Correlation Between BBVA Telecomunicacion and JPMIF Bond
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By analyzing existing cross correlation between BBVA Telecomunicaciones PP and JPMIF Bond Fund, you can compare the effects of market volatilities on BBVA Telecomunicacion and JPMIF Bond 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 BBVA Telecomunicacion with a short position of JPMIF Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBVA Telecomunicacion and JPMIF Bond.
Diversification Opportunities for BBVA Telecomunicacion and JPMIF Bond
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BBVA and JPMIF is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BBVA Telecomunicaciones PP and JPMIF Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMIF Bond Fund and BBVA Telecomunicacion 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 BBVA Telecomunicaciones PP are associated (or correlated) with JPMIF Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMIF Bond Fund has no effect on the direction of BBVA Telecomunicacion i.e., BBVA Telecomunicacion and JPMIF Bond go up and down completely randomly.
Pair Corralation between BBVA Telecomunicacion and JPMIF Bond
Assuming the 90 days trading horizon BBVA Telecomunicaciones PP is expected to generate 1.85 times more return on investment than JPMIF Bond. However, BBVA Telecomunicacion is 1.85 times more volatile than JPMIF Bond Fund. It trades about 0.11 of its potential returns per unit of risk. JPMIF Bond Fund is currently generating about 0.2 per unit of risk. If you would invest 2,953 in BBVA Telecomunicaciones PP on September 14, 2024 and sell it today you would earn a total of 51.00 from holding BBVA Telecomunicaciones PP or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
BBVA Telecomunicaciones PP vs. JPMIF Bond Fund
Performance |
| Timeline |
| BBVA Telecomunicaciones |
| JPMIF Bond Fund |
BBVA Telecomunicacion and JPMIF Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBVA Telecomunicacion and JPMIF Bond
The main advantage of trading using opposite BBVA Telecomunicacion and JPMIF Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBVA Telecomunicacion position performs unexpectedly, JPMIF Bond 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 JPMIF Bond will offset losses from the drop in JPMIF Bond's long position.| BBVA Telecomunicacion vs. Xtrackers ShortDAX | BBVA Telecomunicacion vs. Xtrackers LevDAX | BBVA Telecomunicacion vs. Lyxor 1 |
| JPMIF Bond vs. UBS Money Market | JPMIF Bond vs. Swedbank Robur Corporate | JPMIF Bond vs. BBVA Telecomunicaciones PP | JPMIF Bond vs. Caixabank Seleccin Tendencias |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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