Correlation Between BEKA LUX and JPM America
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By analyzing existing cross correlation between BEKA LUX SICAV and JPM America Equity, you can compare the effects of market volatilities on BEKA LUX and JPM America 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 BEKA LUX with a short position of JPM America. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEKA LUX and JPM America.
Diversification Opportunities for BEKA LUX and JPM America
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BEKA and JPM is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BEKA LUX SICAV and JPM America Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM America Equity and BEKA LUX 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 BEKA LUX SICAV are associated (or correlated) with JPM America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM America Equity has no effect on the direction of BEKA LUX i.e., BEKA LUX and JPM America go up and down completely randomly.
Pair Corralation between BEKA LUX and JPM America
Assuming the 90 days trading horizon BEKA LUX is expected to generate 6.0 times less return on investment than JPM America. But when comparing it to its historical volatility, BEKA LUX SICAV is 5.4 times less risky than JPM America. It trades about 0.11 of its potential returns per unit of risk. JPM America Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 36,978 in JPM America Equity on August 29, 2024 and sell it today you would earn a total of 7,363 from holding JPM America Equity or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.45% |
| Values | Daily Returns |
BEKA LUX SICAV vs. JPM America Equity
Performance |
| Timeline |
| BEKA LUX SICAV |
| JPM America Equity |
BEKA LUX and JPM America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEKA LUX and JPM America
The main advantage of trading using opposite BEKA LUX and JPM America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEKA LUX position performs unexpectedly, JPM America 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 America will offset losses from the drop in JPM America's long position.| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
| JPM America vs. Renaissance Europe C | JPM America vs. Superior Plus Corp | JPM America vs. Origin Agritech | JPM America vs. Identiv |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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