Correlation Between 21Shares Polkadot and JPMorgan ETFs
Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot and JPMorgan ETFs at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining 21Shares Polkadot and JPMorgan ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Polkadot ETP and JPMorgan ETFs ICAV, you can compare the effects of market volatilities on 21Shares Polkadot and JPMorgan ETFs 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 21Shares Polkadot with a short position of JPMorgan ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and JPMorgan ETFs.
Diversification Opportunities for 21Shares Polkadot and JPMorgan ETFs
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 21Shares and JPMorgan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and JPMorgan ETFs ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs ICAV and 21Shares Polkadot 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 21Shares Polkadot ETP are associated (or correlated) with JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs ICAV has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and JPMorgan ETFs go up and down completely randomly.
Pair Corralation between 21Shares Polkadot and JPMorgan ETFs
Assuming the 90 days trading horizon 21Shares Polkadot ETP is expected to generate 23.8 times more return on investment than JPMorgan ETFs. However, 21Shares Polkadot is 23.8 times more volatile than JPMorgan ETFs ICAV. It trades about 0.08 of its potential returns per unit of risk. JPMorgan ETFs ICAV is currently generating about 0.12 per unit of risk. If you would invest 289.00 in 21Shares Polkadot ETP on September 19, 2024 and sell it today you would earn a total of 144.00 from holding 21Shares Polkadot ETP or generate 49.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.64% |
| Values | Daily Returns |
21Shares Polkadot ETP vs. JPMorgan ETFs ICAV
Performance |
| Timeline |
| 21Shares Polkadot ETP |
| JPMorgan ETFs ICAV |
21Shares Polkadot and JPMorgan ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Polkadot and JPMorgan ETFs
The main advantage of trading using opposite 21Shares Polkadot and JPMorgan ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, JPMorgan ETFs 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 JPMorgan ETFs will offset losses from the drop in JPMorgan ETFs' long position.| 21Shares Polkadot vs. Baloise Holding AG | 21Shares Polkadot vs. UBS ETF MSCI | 21Shares Polkadot vs. BB Biotech AG | 21Shares Polkadot vs. Amundi Index Solutions |
| JPMorgan ETFs vs. UBSFund Solutions MSCI | JPMorgan ETFs vs. Vanguard SP 500 | JPMorgan ETFs vs. iShares VII PLC | JPMorgan ETFs vs. iShares Core SP |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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