Correlation Between Jpmorgan Diversified and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Diversified and Federated Kaufmann 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 Jpmorgan Diversified and Federated Kaufmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Diversified Fund and Federated Kaufmann Large, you can compare the effects of market volatilities on Jpmorgan Diversified and Federated Kaufmann 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 Jpmorgan Diversified with a short position of Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Diversified and Federated Kaufmann.
Diversification Opportunities for Jpmorgan Diversified and Federated Kaufmann
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and Federated is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Diversified Fund and Federated Kaufmann Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann Large and Jpmorgan Diversified 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 Jpmorgan Diversified Fund are associated (or correlated) with Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann Large has no effect on the direction of Jpmorgan Diversified i.e., Jpmorgan Diversified and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Jpmorgan Diversified and Federated Kaufmann
Assuming the 90 days horizon Jpmorgan Diversified is expected to generate 1.1 times less return on investment than Federated Kaufmann. But when comparing it to its historical volatility, Jpmorgan Diversified Fund is 1.62 times less risky than Federated Kaufmann. It trades about 0.2 of its potential returns per unit of risk. Federated Kaufmann Large is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,824 in Federated Kaufmann Large on June 12, 2025 and sell it today you would earn a total of 37.00 from holding Federated Kaufmann Large or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Diversified Fund vs. Federated Kaufmann Large
Performance |
| Timeline |
| Jpmorgan Diversified |
| Federated Kaufmann Large |
Jpmorgan Diversified and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Diversified and Federated Kaufmann
The main advantage of trading using opposite Jpmorgan Diversified and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Diversified position performs unexpectedly, Federated Kaufmann 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 Federated Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Jpmorgan Diversified vs. Clearbridge Value Trust | Jpmorgan Diversified vs. Amg Managers Montag | Jpmorgan Diversified vs. Clearbridge Appreciation Fund | Jpmorgan Diversified vs. Brown Advisory Small Cap |
| Federated Kaufmann vs. Prudential High Yield | Federated Kaufmann vs. Multi Manager High Yield | Federated Kaufmann vs. Gmo High Yield | Federated Kaufmann vs. Buffalo High Yield |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |