Correlation Between JPMorgan Japanese and Primary Health

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

By analyzing existing cross correlation between JPMorgan Japanese Investment and Primary Health Properties, you can compare the effects of market volatilities on JPMorgan Japanese and Primary Health 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 Japanese with a short position of Primary Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Japanese and Primary Health.

Diversification Opportunities for JPMorgan Japanese and Primary Health

-0.25

Correlation Coefficient

JPMorgan Japanese  Primary Health

Very good diversification

The 3 months correlation between JPMorgan and Primary is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Japanese Investment and Primary Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primary Health Properties and JPMorgan Japanese 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 Japanese Investment are associated (or correlated) with Primary Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primary Health Properties has no effect on the direction of JPMorgan Japanese i.e., JPMorgan Japanese and Primary Health go up and down completely randomly.

Pair Corralation between JPMorgan Japanese and Primary Health

Assuming the 90 days trading horizon JPMorgan Japanese Investment is expected to generate 0.73 times more return on investment than Primary Health. However, JPMorgan Japanese Investment is 1.37 times less risky than Primary Health. It trades about 0.2 of its potential returns per unit of risk. Primary Health Properties is currently generating about -0.04 per unit of risk. If you would invest  56,600  in JPMorgan Japanese Investment on April 23, 2025 and sell it today you would earn a total of  5,900  from holding JPMorgan Japanese Investment or generate 10.42% return on investment over 90 days.

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

JPMorgan Japanese Investment  vs.  Primary Health Properties

JPMorgan Japanese

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Japanese Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, JPMorgan Japanese may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Primary Health Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Primary Health Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Primary Health is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JPMorgan Japanese and Primary Health

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

The idea behind JPMorgan Japanese Investment and Primary Health Properties 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.