Correlation Between Nova Fund and Jpmorgan Research
Can any of the company-specific risk be diversified away by investing in both Nova Fund and Jpmorgan Research 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 Nova Fund and Jpmorgan Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Fund Class and Jpmorgan Research Equity, you can compare the effects of market volatilities on Nova Fund and Jpmorgan Research 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 Nova Fund with a short position of Jpmorgan Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Fund and Jpmorgan Research.
Diversification Opportunities for Nova Fund and Jpmorgan Research
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nova and Jpmorgan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nova Fund Class and Jpmorgan Research Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Research Equity and Nova Fund 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 Nova Fund Class are associated (or correlated) with Jpmorgan Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Research Equity has no effect on the direction of Nova Fund i.e., Nova Fund and Jpmorgan Research go up and down completely randomly.
Pair Corralation between Nova Fund and Jpmorgan Research
Assuming the 90 days horizon Nova Fund Class is expected to generate 2.24 times more return on investment than Jpmorgan Research. However, Nova Fund is 2.24 times more volatile than Jpmorgan Research Equity. It trades about 0.09 of its potential returns per unit of risk. Jpmorgan Research Equity is currently generating about 0.07 per unit of risk. If you would invest 11,757 in Nova Fund Class on September 10, 2025 and sell it today you would earn a total of 748.00 from holding Nova Fund Class or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nova Fund Class vs. Jpmorgan Research Equity
Performance |
| Timeline |
| Nova Fund Class |
| Jpmorgan Research Equity |
Nova Fund and Jpmorgan Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nova Fund and Jpmorgan Research
The main advantage of trading using opposite Nova Fund and Jpmorgan Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Fund position performs unexpectedly, Jpmorgan Research 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 Research will offset losses from the drop in Jpmorgan Research's long position.| Nova Fund vs. Doubleline Emerging Markets | Nova Fund vs. Fidelity Series Emerging | Nova Fund vs. Ashmore Emerging Markets | Nova Fund vs. Saat Defensive Strategy |
| Jpmorgan Research vs. Oakmark Equity And | Jpmorgan Research vs. American Funds Tax Advantaged | Jpmorgan Research vs. Janus Multi Sector Income | Jpmorgan Research vs. SCE Trust VI |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |