Correlation Between JP Morgan and WisdomTree Emerging
Can any of the company-specific risk be diversified away by investing in both JP Morgan and WisdomTree Emerging 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 JP Morgan and WisdomTree Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JP Morgan Exchange Traded and WisdomTree Emerging Markets, you can compare the effects of market volatilities on JP Morgan and WisdomTree Emerging 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 JP Morgan with a short position of WisdomTree Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and WisdomTree Emerging.
Diversification Opportunities for JP Morgan and WisdomTree Emerging
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JADE and WisdomTree is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Exchange Traded and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging and JP Morgan 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 JP Morgan Exchange Traded are associated (or correlated) with WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of JP Morgan i.e., JP Morgan and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between JP Morgan and WisdomTree Emerging
Given the investment horizon of 90 days JP Morgan is expected to generate 1.76 times less return on investment than WisdomTree Emerging. But when comparing it to its historical volatility, JP Morgan Exchange Traded is 1.03 times less risky than WisdomTree Emerging. It trades about 0.2 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,002 in WisdomTree Emerging Markets on October 1, 2025 and sell it today you would earn a total of 144.00 from holding WisdomTree Emerging Markets or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JP Morgan Exchange Traded vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| JP Morgan Exchange |
| WisdomTree Emerging |
JP Morgan and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JP Morgan and WisdomTree Emerging
The main advantage of trading using opposite JP Morgan and WisdomTree Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JP Morgan position performs unexpectedly, WisdomTree Emerging 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 WisdomTree Emerging will offset losses from the drop in WisdomTree Emerging's long position.| JP Morgan vs. Matthews Emerging Markets | JP Morgan vs. StockSnips AI Powered Sentiment | JP Morgan vs. Themes Global Systemically | JP Morgan vs. PGIM ETF Trust |
| WisdomTree Emerging vs. WisdomTree Emerging Markets | WisdomTree Emerging vs. First Trust RiverFront | WisdomTree Emerging vs. KraneShares California Carbon | WisdomTree Emerging vs. First Trust Small |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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