Correlation Between Cobas Global and JPM Global
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By analyzing existing cross correlation between Cobas Global PP and JPM Global Natural, you can compare the effects of market volatilities on Cobas 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 Cobas Global with a short position of JPM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cobas Global and JPM Global.
Diversification Opportunities for Cobas Global and JPM Global
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cobas and JPM is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cobas Global PP 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 Cobas 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 Cobas Global PP 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 Cobas Global i.e., Cobas Global and JPM Global go up and down completely randomly.
Pair Corralation between Cobas Global and JPM Global
Assuming the 90 days trading horizon Cobas Global PP is expected to under-perform the JPM Global. But the fund apears to be less risky and, when comparing its historical volatility, Cobas Global PP is 1.98 times less risky than JPM Global. The fund trades about -0.16 of its potential returns per unit of risk. The JPM Global Natural is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,020 in JPM Global Natural on November 2, 2024 and sell it today you would earn a total of 105.00 from holding JPM Global Natural or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cobas Global PP vs. JPM Global Natural
Performance |
| Timeline |
| Cobas Global PP |
| JPM Global Natural |
Cobas Global and JPM Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cobas Global and JPM Global
The main advantage of trading using opposite Cobas Global and JPM Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cobas 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.| Cobas Global vs. Groupama Entreprises N | Cobas Global vs. Renaissance Europe C | Cobas Global vs. Superior Plus Corp | Cobas Global vs. Origin Agritech |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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