Correlation Between IShares Intermediate and JPMorgan
Can any of the company-specific risk be diversified away by investing in both IShares Intermediate and JPMorgan 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 IShares Intermediate and JPMorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Intermediate GovernmentCredit and JPMorgan, you can compare the effects of market volatilities on IShares Intermediate and JPMorgan 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 IShares Intermediate with a short position of JPMorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Intermediate and JPMorgan.
Diversification Opportunities for IShares Intermediate and JPMorgan
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and JPMorgan is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding iShares Intermediate Governmen and JPMorgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan and IShares Intermediate 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 iShares Intermediate GovernmentCredit are associated (or correlated) with JPMorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan has no effect on the direction of IShares Intermediate i.e., IShares Intermediate and JPMorgan go up and down completely randomly.
Pair Corralation between IShares Intermediate and JPMorgan
If you would invest 10,455 in iShares Intermediate GovernmentCredit on September 2, 2024 and sell it today you would earn a total of 89.00 from holding iShares Intermediate GovernmentCredit or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
iShares Intermediate Governmen vs. JPMorgan
Performance |
| Timeline |
| iShares Intermediate |
| JPMorgan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
IShares Intermediate and JPMorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Intermediate and JPMorgan
The main advantage of trading using opposite IShares Intermediate and JPMorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Intermediate position performs unexpectedly, JPMorgan 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 will offset losses from the drop in JPMorgan's long position.| IShares Intermediate vs. iShares GovernmentCredit Bond | IShares Intermediate vs. iShares Agency Bond | IShares Intermediate vs. iShares New York | IShares Intermediate vs. iShares MBS ETF |
| JPMorgan vs. Vanguard Intermediate Term Corporate | JPMorgan vs. Vanguard Short Term Bond | JPMorgan vs. Vanguard Long Term Corporate | JPMorgan vs. Vanguard Short Term Treasury |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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