Correlation Between Jpmorgan Equity and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Franklin Mutual 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 Equity and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Fund and Franklin Mutual Global, you can compare the effects of market volatilities on Jpmorgan Equity and Franklin Mutual 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 Equity with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Franklin Mutual.
Diversification Opportunities for Jpmorgan Equity and Franklin Mutual
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and Franklin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Fund and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Jpmorgan Equity 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 Equity Fund are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Franklin Mutual go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Franklin Mutual
Assuming the 90 days horizon Jpmorgan Equity Fund is expected to generate 1.14 times more return on investment than Franklin Mutual. However, Jpmorgan Equity is 1.14 times more volatile than Franklin Mutual Global. It trades about 0.06 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.01 per unit of risk. If you would invest 2,339 in Jpmorgan Equity Fund on June 2, 2025 and sell it today you would earn a total of 398.00 from holding Jpmorgan Equity Fund or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Fund vs. Franklin Mutual Global
Performance |
| Timeline |
| Jpmorgan Equity |
| Franklin Mutual Global |
Jpmorgan Equity and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Franklin Mutual
The main advantage of trading using opposite Jpmorgan Equity and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Franklin Mutual 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 Franklin Mutual will offset losses from the drop in Franklin Mutual's long position.| Jpmorgan Equity vs. John Hancock Variable | Jpmorgan Equity vs. Blue Chip Growth | Jpmorgan Equity vs. John Hancock Var | Jpmorgan Equity vs. John Hancock Var |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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