Correlation Between JPMorgan and UBS AG
Can any of the company-specific risk be diversified away by investing in both JPMorgan and UBS AG 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 JPMorgan and UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan and UBS AG London, you can compare the effects of market volatilities on JPMorgan and UBS AG 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 JPMorgan with a short position of UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan and UBS AG.
Diversification Opportunities for JPMorgan and UBS AG
Pay attention - limited upside
The 3 months correlation between JPMorgan and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London and JPMorgan 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 JPMorgan are associated (or correlated) with UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of JPMorgan i.e., JPMorgan and UBS AG go up and down completely randomly.
Pair Corralation between JPMorgan and UBS AG
If you would invest 2,702 in UBS AG London on November 18, 2024 and sell it today you would earn a total of 47.00 from holding UBS AG London or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JPMorgan vs. UBS AG London
Performance |
| Timeline |
| JPMorgan |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| UBS AG London |
JPMorgan and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan and UBS AG
The main advantage of trading using opposite JPMorgan and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan position performs unexpectedly, UBS AG 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 UBS AG will offset losses from the drop in UBS AG's long position.| JPMorgan vs. Alerian MLP ETF | JPMorgan vs. WisdomTree Emerging Markets | JPMorgan vs. Global X MLP | JPMorgan vs. First Trust North |
| UBS AG vs. Ultimus Managers Trust | UBS AG vs. Direxion Daily SP | UBS AG vs. EA Series Trust | UBS AG vs. Global X MLP |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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