Correlation Between JPMORGAN ETFS and BlackRock Latin
Can any of the company-specific risk be diversified away by investing in both JPMORGAN ETFS and BlackRock Latin 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 ETFS and BlackRock Latin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMORGAN ETFS ICAV and BlackRock Latin American, you can compare the effects of market volatilities on JPMORGAN ETFS and BlackRock Latin 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 ETFS with a short position of BlackRock Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMORGAN ETFS and BlackRock Latin.
Diversification Opportunities for JPMORGAN ETFS and BlackRock Latin
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMORGAN and BlackRock is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JPMORGAN ETFS ICAV and BlackRock Latin American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Latin American and JPMORGAN ETFS 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 ETFS ICAV are associated (or correlated) with BlackRock Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Latin American has no effect on the direction of JPMORGAN ETFS i.e., JPMORGAN ETFS and BlackRock Latin go up and down completely randomly.
Pair Corralation between JPMORGAN ETFS and BlackRock Latin
Assuming the 90 days trading horizon JPMORGAN ETFS ICAV is expected to generate 0.56 times more return on investment than BlackRock Latin. However, JPMORGAN ETFS ICAV is 1.79 times less risky than BlackRock Latin. It trades about 0.39 of its potential returns per unit of risk. BlackRock Latin American is currently generating about 0.22 per unit of risk. If you would invest 248,825 in JPMORGAN ETFS ICAV on October 20, 2024 and sell it today you would earn a total of 15,495 from holding JPMORGAN ETFS ICAV or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMORGAN ETFS ICAV vs. BlackRock Latin American
Performance |
| Timeline |
| JPMORGAN ETFS ICAV |
| BlackRock Latin American |
JPMORGAN ETFS and BlackRock Latin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMORGAN ETFS and BlackRock Latin
The main advantage of trading using opposite JPMORGAN ETFS and BlackRock Latin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMORGAN ETFS position performs unexpectedly, BlackRock Latin 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 BlackRock Latin will offset losses from the drop in BlackRock Latin's long position.| JPMORGAN ETFS vs. Scottish Mortgage Investment | JPMORGAN ETFS vs. VinaCapital Vietnam Opportunity | JPMORGAN ETFS vs. Edinburgh Worldwide Investment | JPMORGAN ETFS vs. Baillie Gifford Growth |
| BlackRock Latin vs. Scottish Mortgage Investment | BlackRock Latin vs. Aberdeen New India | BlackRock Latin vs. Baillie Gifford Growth | BlackRock Latin vs. VinaCapital Vietnam Opportunity |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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