Correlation Between JPMIF Bond and UBS Money
Can any of the company-specific risk be diversified away by investing in both JPMIF Bond and UBS Money 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 JPMIF Bond and UBS Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMIF Bond Fund and UBS Money Market, you can compare the effects of market volatilities on JPMIF Bond and UBS Money 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 JPMIF Bond with a short position of UBS Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMIF Bond and UBS Money.
Diversification Opportunities for JPMIF Bond and UBS Money
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMIF and UBS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding JPMIF Bond Fund and UBS Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Money Market and JPMIF Bond 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 JPMIF Bond Fund are associated (or correlated) with UBS Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Money Market has no effect on the direction of JPMIF Bond i.e., JPMIF Bond and UBS Money go up and down completely randomly.
Pair Corralation between JPMIF Bond and UBS Money
Assuming the 90 days trading horizon JPMIF Bond Fund is expected to generate 1.28 times more return on investment than UBS Money. However, JPMIF Bond is 1.28 times more volatile than UBS Money Market. It trades about 0.2 of its potential returns per unit of risk. UBS Money Market is currently generating about 0.14 per unit of risk. If you would invest 22,640 in JPMIF Bond Fund on September 14, 2024 and sell it today you would earn a total of 441.00 from holding JPMIF Bond Fund or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMIF Bond Fund vs. UBS Money Market
Performance |
| Timeline |
| JPMIF Bond Fund |
| UBS Money Market |
JPMIF Bond and UBS Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMIF Bond and UBS Money
The main advantage of trading using opposite JPMIF Bond and UBS Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMIF Bond position performs unexpectedly, UBS Money 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 UBS Money will offset losses from the drop in UBS Money's long position.| JPMIF Bond vs. UBS Money Market | JPMIF Bond vs. Swedbank Robur Corporate | JPMIF Bond vs. BBVA Telecomunicaciones PP | JPMIF Bond vs. Caixabank Seleccin Tendencias |
| UBS Money vs. Aberdeen Global Asian | UBS Money vs. BGF Global Allocation | UBS Money vs. Cobas Global PP | UBS Money vs. Templeton Global AD |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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