Correlation Between Edinburgh Worldwide and JPMORGAN ETFS
Can any of the company-specific risk be diversified away by investing in both Edinburgh Worldwide and JPMORGAN ETFS 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 Edinburgh Worldwide and JPMORGAN ETFS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edinburgh Worldwide Investment and JPMORGAN ETFS ICAV, you can compare the effects of market volatilities on Edinburgh Worldwide and JPMORGAN ETFS 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 Edinburgh Worldwide with a short position of JPMORGAN ETFS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edinburgh Worldwide and JPMORGAN ETFS.
Diversification Opportunities for Edinburgh Worldwide and JPMORGAN ETFS
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Edinburgh and JPMORGAN is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Edinburgh Worldwide Investment and JPMORGAN ETFS ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN ETFS ICAV and Edinburgh Worldwide 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 Edinburgh Worldwide Investment are associated (or correlated) with JPMORGAN ETFS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMORGAN ETFS ICAV has no effect on the direction of Edinburgh Worldwide i.e., Edinburgh Worldwide and JPMORGAN ETFS go up and down completely randomly.
Pair Corralation between Edinburgh Worldwide and JPMORGAN ETFS
Assuming the 90 days trading horizon Edinburgh Worldwide Investment is expected to generate 5.42 times more return on investment than JPMORGAN ETFS. However, Edinburgh Worldwide is 5.42 times more volatile than JPMORGAN ETFS ICAV. It trades about 0.39 of its potential returns per unit of risk. JPMORGAN ETFS ICAV is currently generating about 0.22 per unit of risk. If you would invest 17,420 in Edinburgh Worldwide Investment on September 15, 2024 and sell it today you would earn a total of 2,080 from holding Edinburgh Worldwide Investment or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edinburgh Worldwide Investment vs. JPMORGAN ETFS ICAV
Performance |
| Timeline |
| Edinburgh Worldwide |
| JPMORGAN ETFS ICAV |
Edinburgh Worldwide and JPMORGAN ETFS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edinburgh Worldwide and JPMORGAN ETFS
The main advantage of trading using opposite Edinburgh Worldwide and JPMORGAN ETFS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edinburgh Worldwide position performs unexpectedly, JPMORGAN ETFS 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 JPMORGAN ETFS will offset losses from the drop in JPMORGAN ETFS's long position.| Edinburgh Worldwide vs. Aberdeen New India | Edinburgh Worldwide vs. VinaCapital Vietnam Opportunity | Edinburgh Worldwide vs. Downing Strategic Micro Cap | Edinburgh Worldwide vs. CT Private Equity |
| JPMORGAN ETFS vs. Edinburgh Worldwide Investment | JPMORGAN ETFS vs. BlackRock Latin American | JPMORGAN ETFS vs. Coor Service Management | JPMORGAN ETFS vs. Franklin FTSE Brazil |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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