Correlation Between Barings Global and JPM Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between Barings Global Umbrella and JPM Global Natural, you can compare the effects of market volatilities on Barings Global and JPM Global 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 Barings Global with a short position of JPM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and JPM Global.
Diversification Opportunities for Barings Global and JPM Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and JPM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Umbrella and JPM Global Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM Global Natural and Barings Global 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 Barings Global Umbrella are associated (or correlated) with JPM Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM Global Natural has no effect on the direction of Barings Global i.e., Barings Global and JPM Global go up and down completely randomly.
Pair Corralation between Barings Global and JPM Global
Assuming the 90 days trading horizon Barings Global Umbrella is expected to generate 0.32 times more return on investment than JPM Global. However, Barings Global Umbrella is 3.17 times less risky than JPM Global. It trades about 0.19 of its potential returns per unit of risk. JPM Global Natural is currently generating about 0.05 per unit of risk. If you would invest 624.00 in Barings Global Umbrella on September 14, 2024 and sell it today you would earn a total of 120.00 from holding Barings Global Umbrella or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.21% |
| Values | Daily Returns |
Barings Global Umbrella vs. JPM Global Natural
Performance |
| Timeline |
| Barings Global Umbrella |
| JPM Global Natural |
Barings Global and JPM Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and JPM Global
The main advantage of trading using opposite Barings Global and JPM Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, JPM Global 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 JPM Global will offset losses from the drop in JPM Global's long position.| Barings Global vs. Azvalor Global Value | Barings Global vs. JPM Global Natural | Barings Global vs. Cobas Global PP | Barings Global vs. Aberdeen Global Asian |
| JPM Global vs. Groupama Entreprises N | JPM Global vs. Renaissance Europe C | JPM Global vs. Superior Plus Corp | JPM Global vs. Origin Agritech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets |