Correlation Between Armada Hflr and JPMORGAN ETFS
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and JPMORGAN ETFS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and JPMORGAN ETFS ICAV, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of JPMORGAN ETFS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and JPMORGAN ETFS.
Diversification Opportunities for Armada Hflr and JPMORGAN ETFS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and JPMORGAN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and JPMORGAN ETFS go up and down completely randomly.
Pair Corralation between Armada Hflr and JPMORGAN ETFS
Considering the 90-day investment horizon Armada Hflr is expected to generate 4.67 times less return on investment than JPMORGAN ETFS. In addition to that, Armada Hflr is 1.43 times more volatile than JPMORGAN ETFS ICAV. It trades about 0.02 of its total potential returns per unit of risk. JPMORGAN ETFS ICAV is currently generating about 0.11 per unit of volatility. If you would invest 201,950 in JPMORGAN ETFS ICAV on September 14, 2024 and sell it today you would earn a total of 63,175 from holding JPMORGAN ETFS ICAV or generate 31.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 45.86% |
| Values | Daily Returns |
Armada Hflr Pr vs. JPMORGAN ETFS ICAV
Performance |
| Timeline |
| Armada Hflr Pr |
| JPMORGAN ETFS ICAV |
Armada Hflr and JPMORGAN ETFS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and JPMORGAN ETFS
The main advantage of trading using opposite Armada Hflr and JPMORGAN ETFS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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's long position.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| JPMORGAN ETFS vs. Edinburgh Worldwide Investment | JPMORGAN ETFS vs. BlackRock Latin American | JPMORGAN ETFS vs. Coor Service Management | JPMORGAN ETFS vs. Franklin FTSE Brazil |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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