Correlation Between Jpmorgan Diversified and Allianzgi Convertible

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

By analyzing existing cross correlation between Jpmorgan Diversified Fund and Allianzgi Vertible Fund, you can compare the effects of market volatilities on Jpmorgan Diversified and Allianzgi Convertible 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 Diversified with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Diversified and Allianzgi Convertible.

Diversification Opportunities for Jpmorgan Diversified and Allianzgi Convertible

0.83

Correlation Coefficient

Jpmorgan Diversified  Allianzgi Convertible

Very poor diversification

The 3 months correlation between Jpmorgan and Allianzgi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Diversified Fund and Allianzgi Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Jpmorgan Diversified 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 Diversified Fund are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Jpmorgan Diversified i.e., Jpmorgan Diversified and Allianzgi Convertible go up and down completely randomly.

Pair Corralation between Jpmorgan Diversified and Allianzgi Convertible

Assuming the 90 days horizon Jpmorgan Diversified is expected to generate 2.22 times less return on investment than Allianzgi Convertible. In addition to that, Jpmorgan Diversified is 1.12 times more volatile than Allianzgi Vertible Fund. It trades about 0.02 of its total potential returns per unit of risk. Allianzgi Vertible Fund is currently generating about 0.04 per unit of volatility. If you would invest  3,636  in Allianzgi Vertible Fund on March 1, 2025 and sell it today you would earn a total of  82.00  from holding Allianzgi Vertible Fund or generate 2.26% return on investment over 90 days.

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

Jpmorgan Diversified Fund  vs.  Allianzgi Vertible Fund

Jpmorgan Diversified

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Diversified Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Convertible

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Vertible Fund are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Allianzgi Convertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jpmorgan Diversified and Allianzgi Convertible

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

The idea behind Jpmorgan Diversified Fund and Allianzgi Vertible Fund 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 Global Correlations module to find global opportunities by holding instruments from different markets.