Correlation Between JPMorgan Active and ETF Series
Can any of the company-specific risk be diversified away by investing in both JPMorgan Active and ETF Series 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 ETF Series 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 ETF Series Solutions, you can compare the effects of market volatilities on JPMorgan Active and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Active and ETF Series.
Diversification Opportunities for JPMorgan Active and ETF Series
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and ETF is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Active Value and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of JPMorgan Active i.e., JPMorgan Active and ETF Series go up and down completely randomly.
Pair Corralation between JPMorgan Active and ETF Series
Given the investment horizon of 90 days JPMorgan Active Value is expected to generate 5.6 times more return on investment than ETF Series. However, JPMorgan Active is 5.6 times more volatile than ETF Series Solutions. It trades about 0.3 of its potential returns per unit of risk. ETF Series Solutions is currently generating about 0.09 per unit of risk. If you would invest 6,447 in JPMorgan Active Value on August 30, 2024 and sell it today you would earn a total of 392.00 from holding JPMorgan Active Value or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Active Value vs. ETF Series Solutions
Performance |
| Timeline |
| JPMorgan Active Value |
| ETF Series Solutions |
JPMorgan Active and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Active and ETF Series
The main advantage of trading using opposite JPMorgan Active and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Active position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.| JPMorgan Active vs. Global X Funds | JPMorgan Active vs. Dell Technologies | JPMorgan Active vs. Juniper Networks |
| ETF Series vs. Valued Advisers Trust | ETF Series vs. Columbia Diversified Fixed | ETF Series vs. Principal Exchange Traded Funds | ETF Series vs. Doubleline Etf Trust |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |