Correlation Between JPMORGAN ETFS and Edinburgh Worldwide
Can any of the company-specific risk be diversified away by investing in both JPMORGAN ETFS and Edinburgh Worldwide 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 ETFS and Edinburgh Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMORGAN ETFS ICAV and Edinburgh Worldwide Investment, you can compare the effects of market volatilities on JPMORGAN ETFS and Edinburgh Worldwide 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 ETFS with a short position of Edinburgh Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMORGAN ETFS and Edinburgh Worldwide.
Diversification Opportunities for JPMORGAN ETFS and Edinburgh Worldwide
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMORGAN and Edinburgh is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding JPMORGAN ETFS ICAV and Edinburgh Worldwide Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edinburgh Worldwide and JPMORGAN ETFS 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 ETFS ICAV are associated (or correlated) with Edinburgh Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edinburgh Worldwide has no effect on the direction of JPMORGAN ETFS i.e., JPMORGAN ETFS and Edinburgh Worldwide go up and down completely randomly.
Pair Corralation between JPMORGAN ETFS and Edinburgh Worldwide
Assuming the 90 days trading horizon JPMORGAN ETFS is expected to generate 7.5 times less return on investment than Edinburgh Worldwide. But when comparing it to its historical volatility, JPMORGAN ETFS ICAV is 9.62 times less risky than Edinburgh Worldwide. It trades about 0.59 of its potential returns per unit of risk. Edinburgh Worldwide Investment is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 17,440 in Edinburgh Worldwide Investment on September 14, 2024 and sell it today you would earn a total of 2,360 from holding Edinburgh Worldwide Investment or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMORGAN ETFS ICAV vs. Edinburgh Worldwide Investment
Performance |
| Timeline |
| JPMORGAN ETFS ICAV |
| Edinburgh Worldwide |
JPMORGAN ETFS and Edinburgh Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMORGAN ETFS and Edinburgh Worldwide
The main advantage of trading using opposite JPMORGAN ETFS and Edinburgh Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMORGAN ETFS position performs unexpectedly, Edinburgh Worldwide 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 Edinburgh Worldwide will offset losses from the drop in Edinburgh Worldwide's long position.| JPMORGAN ETFS vs. Edinburgh Worldwide Investment | JPMORGAN ETFS vs. BlackRock Latin American | JPMORGAN ETFS vs. Coor Service Management | JPMORGAN ETFS vs. Franklin FTSE Brazil |
| Edinburgh Worldwide vs. BlackRock Latin American | Edinburgh Worldwide vs. VinaCapital Vietnam Opportunity | Edinburgh Worldwide vs. iShares MSCI Japan | Edinburgh Worldwide vs. Amundi EUR High |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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