Correlation Between JPM INDIAN and CyberAgent

Can any of the company-specific risk be diversified away by investing in both JPM INDIAN and CyberAgent 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 JPM INDIAN and CyberAgent into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JPM INDIAN INVT and CyberAgent, you can compare the effects of market volatilities on JPM INDIAN and CyberAgent 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 JPM INDIAN with a short position of CyberAgent. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM INDIAN and CyberAgent.

Diversification Opportunities for JPM INDIAN and CyberAgent

0.85

Correlation Coefficient

JPM INDIAN  CyberAgent

Very poor diversification

The 3 months correlation between JPM and CyberAgent is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JPM INDIAN INVT and CyberAgent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberAgent and JPM INDIAN 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 JPM INDIAN INVT are associated (or correlated) with CyberAgent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberAgent has no effect on the direction of JPM INDIAN i.e., JPM INDIAN and CyberAgent go up and down completely randomly.

Pair Corralation between JPM INDIAN and CyberAgent

Assuming the 90 days horizon JPM INDIAN is expected to generate 1.8 times less return on investment than CyberAgent. But when comparing it to its historical volatility, JPM INDIAN INVT is 1.3 times less risky than CyberAgent. It trades about 0.1 of its potential returns per unit of risk. CyberAgent is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  725.00  in CyberAgent on April 20, 2025 and sell it today you would earn a total of  160.00  from holding CyberAgent or generate 22.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

JPM INDIAN INVT  vs.  CyberAgent

JPM INDIAN INVT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPM INDIAN INVT are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, JPM INDIAN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CyberAgent

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CyberAgent are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CyberAgent reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JPM INDIAN and CyberAgent

The main advantage of trading using opposite JPM INDIAN and CyberAgent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM INDIAN position performs unexpectedly, CyberAgent 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 CyberAgent will offset losses from the drop in CyberAgent's long position.

The idea behind JPM INDIAN INVT and CyberAgent 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.