Correlation Between Stadion Trilogy and Jpmorgan Hedged

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Can any of the company-specific risk be diversified away by investing in both Stadion Trilogy and Jpmorgan Hedged at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stadion Trilogy and Jpmorgan Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stadion Trilogy Alternative and Jpmorgan Hedged Equity, you can compare the effects of market volatilities on Stadion Trilogy and Jpmorgan Hedged and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Stadion Trilogy with a short position of Jpmorgan Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stadion Trilogy and Jpmorgan Hedged.

Diversification Opportunities for Stadion Trilogy and Jpmorgan Hedged

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Stadion and Jpmorgan is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Stadion Trilogy Alternative and Jpmorgan Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Hedged Equity and Stadion Trilogy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Stadion Trilogy Alternative are associated (or correlated) with Jpmorgan Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Hedged Equity has no effect on the direction of Stadion Trilogy i.e., Stadion Trilogy and Jpmorgan Hedged go up and down completely randomly.

Pair Corralation between Stadion Trilogy and Jpmorgan Hedged

Assuming the 90 days horizon Stadion Trilogy Alternative is expected to under-perform the Jpmorgan Hedged. But the mutual fund apears to be less risky and, when comparing its historical volatility, Stadion Trilogy Alternative is 1.31 times less risky than Jpmorgan Hedged. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Jpmorgan Hedged Equity is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,245  in Jpmorgan Hedged Equity on May 13, 2022 and sell it today you would earn a total of  293.00  from holding Jpmorgan Hedged Equity or generate 13.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Stadion Trilogy Alternative  vs.  Jpmorgan Hedged Equity

 Performance (%) 
       Timeline  
Stadion Trilogy Alte 
Stadion Performance
0 of 100
Over the last 90 days Stadion Trilogy Alternative has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Stadion Trilogy is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Stadion Price Channel

Jpmorgan Hedged Equity 
Jpmorgan Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Hedged Equity are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Hedged is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Price Channel

Stadion Trilogy and Jpmorgan Hedged Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stadion Trilogy and Jpmorgan Hedged

The main advantage of trading using opposite Stadion Trilogy and Jpmorgan Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stadion Trilogy position performs unexpectedly, Jpmorgan Hedged can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jpmorgan Hedged will offset losses from the drop in Jpmorgan Hedged's long position.

Stadion Trilogy Alternative

Pair trading matchups for Stadion Trilogy

The idea behind Stadion Trilogy Alternative and Jpmorgan Hedged Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Jpmorgan Hedged Equity

Pair trading matchups for Jpmorgan Hedged

Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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