Correlation Between Jpmorgan Emerging and Usaa Nasdaq
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Usaa Nasdaq 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 Usaa Nasdaq 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 Usaa Nasdaq 100, you can compare the effects of market volatilities on Jpmorgan Emerging and Usaa Nasdaq 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 Usaa Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Usaa Nasdaq.
Diversification Opportunities for Jpmorgan Emerging and Usaa Nasdaq
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jpmorgan and Usaa is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Usaa Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usaa Nasdaq 100 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 Usaa Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usaa Nasdaq 100 has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Usaa Nasdaq go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Usaa Nasdaq
Assuming the 90 days horizon Jpmorgan Emerging is expected to generate 1.23 times less return on investment than Usaa Nasdaq. But when comparing it to its historical volatility, Jpmorgan Emerging Markets is 4.23 times less risky than Usaa Nasdaq. It trades about 0.34 of its potential returns per unit of risk. Usaa Nasdaq 100 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,215 in Usaa Nasdaq 100 on November 8, 2024 and sell it today you would earn a total of 118.00 from holding Usaa Nasdaq 100 or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Usaa Nasdaq 100
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Usaa Nasdaq 100 |
Jpmorgan Emerging and Usaa Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Usaa Nasdaq
The main advantage of trading using opposite Jpmorgan Emerging and Usaa Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Usaa Nasdaq 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 Usaa Nasdaq will offset losses from the drop in Usaa Nasdaq's long position.| Jpmorgan Emerging vs. Aqr Managed Futures | Jpmorgan Emerging vs. Massmutual Premier Inflation Protected | Jpmorgan Emerging vs. Abbey Capital Futures | Jpmorgan Emerging vs. Ab Bond Inflation |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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