Correlation Between JPMorgan Active and Main International
Can any of the company-specific risk be diversified away by investing in both JPMorgan Active and Main International 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 JPMorgan Active and Main International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Active Value and Main International ETF, you can compare the effects of market volatilities on JPMorgan Active and Main International 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 JPMorgan Active with a short position of Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Active and Main International.
Diversification Opportunities for JPMorgan Active and Main International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JPMorgan and Main is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Active Value and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF and JPMorgan Active 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 JPMorgan Active Value are associated (or correlated) with Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of JPMorgan Active i.e., JPMorgan Active and Main International go up and down completely randomly.
Pair Corralation between JPMorgan Active and Main International
Given the investment horizon of 90 days JPMorgan Active Value is expected to generate 0.77 times more return on investment than Main International. However, JPMorgan Active Value is 1.29 times less risky than Main International. It trades about 0.33 of its potential returns per unit of risk. Main International ETF is currently generating about 0.21 per unit of risk. If you would invest 6,391 in JPMorgan Active Value on November 4, 2024 and sell it today you would earn a total of 267.00 from holding JPMorgan Active Value or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Active Value vs. Main International ETF
Performance |
| Timeline |
| JPMorgan Active Value |
| Main International ETF |
JPMorgan Active and Main International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Active and Main International
The main advantage of trading using opposite JPMorgan Active and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Active position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.| JPMorgan Active vs. Global X Funds | JPMorgan Active vs. Dell Technologies | JPMorgan Active vs. Juniper Networks |
| Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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