Correlation Between JP Morgan and WisdomTree Trust
Can any of the company-specific risk be diversified away by investing in both JP Morgan and WisdomTree Trust 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 Trust 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 Trust, you can compare the effects of market volatilities on JP Morgan and WisdomTree Trust 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 Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and WisdomTree Trust.
Diversification Opportunities for JP Morgan and WisdomTree Trust
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JADE and WisdomTree is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Exchange Traded and WisdomTree Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Trust 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 Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Trust has no effect on the direction of JP Morgan i.e., JP Morgan and WisdomTree Trust go up and down completely randomly.
Pair Corralation between JP Morgan and WisdomTree Trust
Given the investment horizon of 90 days JP Morgan Exchange Traded is expected to generate 0.57 times more return on investment than WisdomTree Trust. However, JP Morgan Exchange Traded is 1.77 times less risky than WisdomTree Trust. It trades about 0.03 of its potential returns per unit of risk. WisdomTree Trust is currently generating about -0.1 per unit of risk. If you would invest 6,205 in JP Morgan Exchange Traded on September 28, 2025 and sell it today you would earn a total of 61.00 from holding JP Morgan Exchange Traded or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
JP Morgan Exchange Traded vs. WisdomTree Trust
Performance |
| Timeline |
| JP Morgan Exchange |
| WisdomTree Trust |
JP Morgan and WisdomTree Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JP Morgan and WisdomTree Trust
The main advantage of trading using opposite JP Morgan and WisdomTree Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JP Morgan position performs unexpectedly, WisdomTree Trust 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 Trust will offset losses from the drop in WisdomTree Trust'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 Trust vs. SPDR SSGA My2030 | WisdomTree Trust vs. Sprott Junior Copper | WisdomTree Trust vs. SPDR SSGA My2027 | WisdomTree Trust vs. Morgan Stanley ETF |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |