Correlation Between CM AM and JPM Global
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By analyzing existing cross correlation between CM AM Monplus NE and JPM Global Natural, you can compare the effects of market volatilities on CM AM 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 CM AM with a short position of JPM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and JPM Global.
Diversification Opportunities for CM AM and JPM Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0P0001F96C and JPM is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE 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 CM AM 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 CM AM Monplus NE 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 CM AM i.e., CM AM and JPM Global go up and down completely randomly.
Pair Corralation between CM AM and JPM Global
Assuming the 90 days trading horizon CM AM is expected to generate 14.44 times less return on investment than JPM Global. But when comparing it to its historical volatility, CM AM Monplus NE is 132.28 times less risky than JPM Global. It trades about 1.33 of its potential returns per unit of risk. JPM Global Natural is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,111 in JPM Global Natural on September 2, 2024 and sell it today you would earn a total of 71.00 from holding JPM Global Natural or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CM AM Monplus NE vs. JPM Global Natural
Performance |
| Timeline |
| CM AM Monplus |
| JPM Global Natural |
CM AM and JPM Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and JPM Global
The main advantage of trading using opposite CM AM and JPM Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM 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.| CM AM vs. Groupama Entreprises N | CM AM vs. Renaissance Europe C | CM AM vs. Superior Plus Corp | CM AM vs. Origin Agritech |
| JPM Global vs. Azvalor Global Value | JPM Global vs. BGF Global Allocation | JPM Global vs. Cobas Global PP | JPM Global vs. Aberdeen Global Asian |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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