Correlation Between IShares Global and JPMorgan Global
Can any of the company-specific risk be diversified away by investing in both IShares Global and JPMorgan Global 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 Global and JPMorgan Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Healthcare and JPMorgan Global Equity, you can compare the effects of market volatilities on IShares Global and JPMorgan Global 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 Global with a short position of JPMorgan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and JPMorgan Global.
Diversification Opportunities for IShares Global and JPMorgan Global
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and JPMorgan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Healthcare and JPMorgan Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Global Equity and IShares Global 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 Global Healthcare are associated (or correlated) with JPMorgan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Global Equity has no effect on the direction of IShares Global i.e., IShares Global and JPMorgan Global go up and down completely randomly.
Pair Corralation between IShares Global and JPMorgan Global
Assuming the 90 days trading horizon iShares Global Healthcare is expected to under-perform the JPMorgan Global. But the etf apears to be less risky and, when comparing its historical volatility, iShares Global Healthcare is 1.09 times less risky than JPMorgan Global. The etf trades about 0.0 of its potential returns per unit of risk. The JPMorgan Global Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,984 in JPMorgan Global Equity on August 30, 2024 and sell it today you would earn a total of 206.00 from holding JPMorgan Global Equity or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
iShares Global Healthcare vs. JPMorgan Global Equity
Performance |
| Timeline |
| iShares Global Healthcare |
| JPMorgan Global Equity |
IShares Global and JPMorgan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and JPMorgan Global
The main advantage of trading using opposite IShares Global and JPMorgan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, JPMorgan Global 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 Global will offset losses from the drop in JPMorgan Global's long position.| IShares Global vs. Betashares Asia Technology | IShares Global vs. CD Private Equity | IShares Global vs. BetaShares Australia 200 | IShares Global vs. Australian High Interest |
| JPMorgan Global vs. JPMorgan Equity Premium | JPMorgan Global vs. JPMorgan Global Research | JPMorgan Global vs. JPMorgan 100Q Equity | JPMorgan Global vs. JPMorgan 100Q Equity |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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