Correlation Between JPMorgan Core and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Core and DoubleLine ETF 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 Core and DoubleLine ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Core Plus and DoubleLine ETF Trust, you can compare the effects of market volatilities on JPMorgan Core and DoubleLine ETF 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 Core with a short position of DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Core and DoubleLine ETF.
Diversification Opportunities for JPMorgan Core and DoubleLine ETF
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and DoubleLine is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Core Plus and DoubleLine ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleLine ETF Trust and JPMorgan Core 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 Core Plus are associated (or correlated) with DoubleLine ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleLine ETF Trust has no effect on the direction of JPMorgan Core i.e., JPMorgan Core and DoubleLine ETF go up and down completely randomly.
Pair Corralation between JPMorgan Core and DoubleLine ETF
Given the investment horizon of 90 days JPMorgan Core is expected to generate 3.0 times less return on investment than DoubleLine ETF. But when comparing it to its historical volatility, JPMorgan Core Plus is 2.69 times less risky than DoubleLine ETF. It trades about 0.11 of its potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,674 in DoubleLine ETF Trust on September 1, 2024 and sell it today you would earn a total of 378.00 from holding DoubleLine ETF Trust or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
JPMorgan Core Plus vs. DoubleLine ETF Trust
Performance |
| Timeline |
| JPMorgan Core Plus |
| DoubleLine ETF Trust |
JPMorgan Core and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Core and DoubleLine ETF
The main advantage of trading using opposite JPMorgan Core and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Core position performs unexpectedly, DoubleLine ETF 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 DoubleLine ETF will offset losses from the drop in DoubleLine ETF's long position.| JPMorgan Core vs. SSGA Active Trust | JPMorgan Core vs. BlackRock Intermediate Muni | JPMorgan Core vs. iShares BBB Rated | JPMorgan Core vs. Xtrackers Short Duration |
| DoubleLine ETF vs. FT Vest Equity | DoubleLine ETF vs. Northern Lights | DoubleLine ETF vs. Dimensional International High | DoubleLine ETF vs. Matthews China Discovery |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |