Correlation Between IE00B0H4TS55 and JPM Europe
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By analyzing existing cross correlation between IE00B0H4TS55 and JPM Europe Small, you can compare the effects of market volatilities on IE00B0H4TS55 and JPM Europe 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 IE00B0H4TS55 with a short position of JPM Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and JPM Europe.
Diversification Opportunities for IE00B0H4TS55 and JPM Europe
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IE00B0H4TS55 and JPM is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 and JPM Europe Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM Europe Small and IE00B0H4TS55 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 IE00B0H4TS55 are associated (or correlated) with JPM Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM Europe Small has no effect on the direction of IE00B0H4TS55 i.e., IE00B0H4TS55 and JPM Europe go up and down completely randomly.
Pair Corralation between IE00B0H4TS55 and JPM Europe
Assuming the 90 days trading horizon IE00B0H4TS55 is expected to generate 5.32 times less return on investment than JPM Europe. But when comparing it to its historical volatility, IE00B0H4TS55 is 3.94 times less risky than JPM Europe. It trades about 0.02 of its potential returns per unit of risk. JPM Europe Small is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,189 in JPM Europe Small on November 28, 2024 and sell it today you would earn a total of 244.00 from holding JPM Europe Small or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.56% |
| Values | Daily Returns |
IE00B0H4TS55 vs. JPM Europe Small
Performance |
| Timeline |
| IE00B0H4TS55 |
| JPM Europe Small |
IE00B0H4TS55 and JPM Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IE00B0H4TS55 and JPM Europe
The main advantage of trading using opposite IE00B0H4TS55 and JPM Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 position performs unexpectedly, JPM Europe 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 Europe will offset losses from the drop in JPM Europe's long position.| IE00B0H4TS55 vs. Esfera Robotics R | IE00B0H4TS55 vs. R co Valor F | IE00B0H4TS55 vs. CM AM Monplus NE | IE00B0H4TS55 vs. BEKA LUX SICAV |
| JPM Europe vs. Groupama Entreprises N | JPM Europe vs. Renaissance Europe C | JPM Europe vs. Superior Plus Corp | JPM Europe 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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