Correlation Between JPMorgan Core and VanEck ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Core and VanEck 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 VanEck 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 VanEck ETF Trust, you can compare the effects of market volatilities on JPMorgan Core and VanEck 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 VanEck ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Core and VanEck ETF.
Diversification Opportunities for JPMorgan Core and VanEck ETF
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and VanEck is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Core Plus and VanEck ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck 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 VanEck ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck ETF Trust has no effect on the direction of JPMorgan Core i.e., JPMorgan Core and VanEck ETF go up and down completely randomly.
Pair Corralation between JPMorgan Core and VanEck ETF
Given the investment horizon of 90 days JPMorgan Core is expected to generate 3.99 times less return on investment than VanEck ETF. But when comparing it to its historical volatility, JPMorgan Core Plus is 1.98 times less risky than VanEck ETF. It trades about 0.16 of its potential returns per unit of risk. VanEck ETF Trust is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,844 in VanEck ETF Trust on September 1, 2024 and sell it today you would earn a total of 143.00 from holding VanEck ETF Trust or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Core Plus vs. VanEck ETF Trust
Performance |
| Timeline |
| JPMorgan Core Plus |
| VanEck ETF Trust |
JPMorgan Core and VanEck ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Core and VanEck ETF
The main advantage of trading using opposite JPMorgan Core and VanEck ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Core position performs unexpectedly, VanEck 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 VanEck ETF will offset losses from the drop in VanEck 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 |
| VanEck ETF vs. VanEck Morningstar International | VanEck ETF vs. VanEck Vectors ETF | VanEck ETF vs. BlackRock Carbon Transition | VanEck ETF vs. VanEck Morningstar Wide |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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