Correlation Between JPMorgan ETFs and SPDR Dow
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and SPDR Dow 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 SPDR Dow 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 SPDR Dow Jones, you can compare the effects of market volatilities on JPMorgan ETFs and SPDR Dow 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 SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and SPDR Dow.
Diversification Opportunities for JPMorgan ETFs and SPDR Dow
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JPMorgan and SPDR is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones 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 SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and SPDR Dow go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and SPDR Dow
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.43 times more return on investment than SPDR Dow. However, JPMorgan ETFs ICAV is 2.32 times less risky than SPDR Dow. It trades about 0.19 of its potential returns per unit of risk. SPDR Dow Jones is currently generating about -0.04 per unit of risk. If you would invest 9,333 in JPMorgan ETFs ICAV on September 19, 2024 and sell it today you would earn a total of 94.00 from holding JPMorgan ETFs ICAV or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. SPDR Dow Jones
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| SPDR Dow Jones |
JPMorgan ETFs and SPDR Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and SPDR Dow
The main advantage of trading using opposite JPMorgan ETFs and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, SPDR Dow 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 SPDR Dow will offset losses from the drop in SPDR Dow'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 |
| SPDR Dow vs. Baloise Holding AG | SPDR Dow vs. 21Shares Polkadot ETP | SPDR Dow vs. UBS ETF MSCI | SPDR Dow vs. BB Biotech AG |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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