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
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JADE and WisdomTree is 0.83. 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 Exchange Traded is expected to generate 1.07 times more return on investment than WisdomTree Emerging. However, JP Morgan is 1.07 times more volatile than WisdomTree Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.08 per unit of risk. If you would invest 4,646 in JP Morgan Exchange Traded on October 1, 2025 and sell it today you would earn a total of 1,658 from holding JP Morgan Exchange Traded or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 82.02% |
| 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. Themes Global Systemically | WisdomTree Emerging vs. PGIM ETF Trust | WisdomTree Emerging vs. JP Morgan Exchange Traded | WisdomTree Emerging vs. StockSnips AI Powered Sentiment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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