Correlation Between JPMorgan ETFs and 21Shares Polkadot
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and 21Shares Polkadot 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 21Shares Polkadot 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 21Shares Polkadot ETP, you can compare the effects of market volatilities on JPMorgan ETFs and 21Shares Polkadot 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 21Shares Polkadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and 21Shares Polkadot.
Diversification Opportunities for JPMorgan ETFs and 21Shares Polkadot
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and 21Shares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and 21Shares Polkadot ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Polkadot ETP 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 21Shares Polkadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Polkadot ETP has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and 21Shares Polkadot go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and 21Shares Polkadot
Assuming the 90 days trading horizon JPMorgan ETFs is expected to generate 13.91 times less return on investment than 21Shares Polkadot. But when comparing it to its historical volatility, JPMorgan ETFs ICAV is 12.66 times less risky than 21Shares Polkadot. It trades about 0.04 of its potential returns per unit of risk. 21Shares Polkadot ETP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 227.00 in 21Shares Polkadot ETP on September 19, 2024 and sell it today you would earn a total of 183.00 from holding 21Shares Polkadot ETP or generate 80.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.57% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. 21Shares Polkadot ETP
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| 21Shares Polkadot ETP |
JPMorgan ETFs and 21Shares Polkadot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and 21Shares Polkadot
The main advantage of trading using opposite JPMorgan ETFs and 21Shares Polkadot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, 21Shares Polkadot 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 21Shares Polkadot will offset losses from the drop in 21Shares Polkadot's long position.| JPMorgan ETFs vs. UBSFund Solutions MSCI | JPMorgan ETFs vs. Vanguard SP 500 | JPMorgan ETFs vs. iShares VII PLC | JPMorgan ETFs vs. iShares Core SP |
| 21Shares Polkadot vs. Baloise Holding AG | 21Shares Polkadot vs. UBS ETF MSCI | 21Shares Polkadot vs. BB Biotech AG | 21Shares Polkadot vs. Amundi Index Solutions |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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