Correlation Between JPM INDIAN and Fair Isaac

Can any of the company-specific risk be diversified away by investing in both JPM INDIAN and Fair Isaac 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 Fair Isaac 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 Fair Isaac, you can compare the effects of market volatilities on JPM INDIAN and Fair Isaac 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 Fair Isaac. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM INDIAN and Fair Isaac.

Diversification Opportunities for JPM INDIAN and Fair Isaac

-0.55

Correlation Coefficient

JPM INDIAN  Fair Isaac

Excellent diversification

The 3 months correlation between JPM and Fair is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding JPM INDIAN INVT and Fair Isaac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Isaac 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 Fair Isaac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Isaac has no effect on the direction of JPM INDIAN i.e., JPM INDIAN and Fair Isaac go up and down completely randomly.

Pair Corralation between JPM INDIAN and Fair Isaac

Assuming the 90 days horizon JPM INDIAN INVT is expected to generate 0.46 times more return on investment than Fair Isaac. However, JPM INDIAN INVT is 2.17 times less risky than Fair Isaac. It trades about 0.1 of its potential returns per unit of risk. Fair Isaac is currently generating about -0.05 per unit of risk. If you would invest  1,120  in JPM INDIAN INVT on April 21, 2025 and sell it today you would earn a total of  130.00  from holding JPM INDIAN INVT or generate 11.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

JPM INDIAN INVT  vs.  Fair Isaac

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.

Fair Isaac

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fair Isaac has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with JPM INDIAN and Fair Isaac

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

The idea behind JPM INDIAN INVT and Fair Isaac 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.