Correlation Between JPM BetaBuilders and Amundi Index
Can any of the company-specific risk be diversified away by investing in both JPM BetaBuilders and Amundi Index 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 JPM BetaBuilders and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPM BetaBuilders Treasury and Amundi Index Solutions, you can compare the effects of market volatilities on JPM BetaBuilders and Amundi Index 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 JPM BetaBuilders with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM BetaBuilders and Amundi Index.
Diversification Opportunities for JPM BetaBuilders and Amundi Index
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JPM and Amundi is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding JPM BetaBuilders Treasury and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and JPM BetaBuilders 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 JPM BetaBuilders Treasury are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of JPM BetaBuilders i.e., JPM BetaBuilders and Amundi Index go up and down completely randomly.
Pair Corralation between JPM BetaBuilders and Amundi Index
Assuming the 90 days trading horizon JPM BetaBuilders is expected to generate 2.23 times less return on investment than Amundi Index. But when comparing it to its historical volatility, JPM BetaBuilders Treasury is 2.2 times less risky than Amundi Index. It trades about 0.05 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 275,700 in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 46,750 from holding Amundi Index Solutions or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
JPM BetaBuilders Treasury vs. Amundi Index Solutions
Performance |
| Timeline |
| JPM BetaBuilders Treasury |
| Amundi Index Solutions |
JPM BetaBuilders and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM BetaBuilders and Amundi Index
The main advantage of trading using opposite JPM BetaBuilders and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM BetaBuilders position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| JPM BetaBuilders vs. JPM BetaBuilders China | JPM BetaBuilders vs. JPM AC Asia | JPM BetaBuilders vs. JPM Research Enhanced | JPM BetaBuilders vs. JPM Global Research |
| Amundi Index vs. WisdomTree Natural Gas | Amundi Index vs. Leverage Shares 3x | Amundi Index vs. GraniteShares 3x Short | Amundi Index vs. WisdomTree Natural Gas |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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