Correlation Between Jpmorgan Emerging and Sit Emerging
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Sit Emerging 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 Emerging and Sit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Emerging Markets and Sit Emerging Markets, you can compare the effects of market volatilities on Jpmorgan Emerging and Sit Emerging 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 Emerging with a short position of Sit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Sit Emerging.
Diversification Opportunities for Jpmorgan Emerging and Sit Emerging
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and Sit is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Sit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Emerging Markets and Jpmorgan Emerging 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 Emerging Markets are associated (or correlated) with Sit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Emerging Markets has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Sit Emerging go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Sit Emerging
Assuming the 90 days horizon Jpmorgan Emerging is expected to generate 2.54 times less return on investment than Sit Emerging. But when comparing it to its historical volatility, Jpmorgan Emerging Markets is 1.26 times less risky than Sit Emerging. It trades about 0.15 of its potential returns per unit of risk. Sit Emerging Markets is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Sit Emerging Markets on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Sit Emerging Markets or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Sit Emerging Markets
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Sit Emerging Markets |
Jpmorgan Emerging and Sit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Sit Emerging
The main advantage of trading using opposite Jpmorgan Emerging and Sit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Sit Emerging 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 Sit Emerging will offset losses from the drop in Sit Emerging's long position.| Jpmorgan Emerging vs. Invesco Global Health | Jpmorgan Emerging vs. Blackrock Health Sciences | Jpmorgan Emerging vs. The Hartford Healthcare | Jpmorgan Emerging vs. Blackrock Health Sciences |
| Sit Emerging vs. Touchstone Large Cap | Sit Emerging vs. Growth Portfolio Class | Sit Emerging vs. Tfa Alphagen Growth | Sit Emerging vs. Barings Global Floating |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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