Correlation Between Jackson Square and Electronics Fund
Can any of the company-specific risk be diversified away by investing in both Jackson Square and Electronics Fund 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 Jackson Square and Electronics Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jackson Square Smid Cap and Electronics Fund Investor, you can compare the effects of market volatilities on Jackson Square and Electronics Fund 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 Jackson Square with a short position of Electronics Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jackson Square and Electronics Fund.
Diversification Opportunities for Jackson Square and Electronics Fund
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jackson and Electronics is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jackson Square Smid Cap and Electronics Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Fund Investor and Jackson Square 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 Jackson Square Smid Cap are associated (or correlated) with Electronics Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Fund Investor has no effect on the direction of Jackson Square i.e., Jackson Square and Electronics Fund go up and down completely randomly.
Pair Corralation between Jackson Square and Electronics Fund
Assuming the 90 days horizon Jackson Square is expected to generate 2.46 times less return on investment than Electronics Fund. But when comparing it to its historical volatility, Jackson Square Smid Cap is 1.65 times less risky than Electronics Fund. It trades about 0.12 of its potential returns per unit of risk. Electronics Fund Investor is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 49,660 in Electronics Fund Investor on August 14, 2025 and sell it today you would earn a total of 10,881 from holding Electronics Fund Investor or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jackson Square Smid Cap vs. Electronics Fund Investor
Performance |
| Timeline |
| Jackson Square Smid |
| Electronics Fund Investor |
Jackson Square and Electronics Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jackson Square and Electronics Fund
The main advantage of trading using opposite Jackson Square and Electronics Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jackson Square position performs unexpectedly, Electronics Fund 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 Electronics Fund will offset losses from the drop in Electronics Fund's long position.| Jackson Square vs. Amg Timessquare Small | Jackson Square vs. T Rowe Price | Jackson Square vs. Saat Aggressive Strategy | Jackson Square vs. Saat Aggressive Strategy |
| Electronics Fund vs. Technology Fund Investor | Electronics Fund vs. Biotechnology Fund Investor | Electronics Fund vs. Tcw Relative Value | Electronics Fund vs. Matthews China Dividend |
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 the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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