Correlation Between Jpmorgan Emerging and Secured Options
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Secured Options 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 Secured Options 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 Secured Options Portfolio, you can compare the effects of market volatilities on Jpmorgan Emerging and Secured Options 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 Secured Options. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Secured Options.
Diversification Opportunities for Jpmorgan Emerging and Secured Options
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jpmorgan and Secured is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Secured Options Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secured Options Portfolio 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 Secured Options. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secured Options Portfolio has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Secured Options go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Secured Options
Assuming the 90 days horizon Jpmorgan Emerging is expected to generate 1.71 times less return on investment than Secured Options. In addition to that, Jpmorgan Emerging is 4.99 times more volatile than Secured Options Portfolio. It trades about 0.04 of its total potential returns per unit of risk. Secured Options Portfolio is currently generating about 0.34 per unit of volatility. If you would invest 1,503 in Secured Options Portfolio on September 12, 2024 and sell it today you would earn a total of 57.00 from holding Secured Options Portfolio or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Secured Options Portfolio
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Secured Options Portfolio |
Jpmorgan Emerging and Secured Options Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Secured Options
The main advantage of trading using opposite Jpmorgan Emerging and Secured Options positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Secured Options 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 Secured Options will offset losses from the drop in Secured Options' long position.| Jpmorgan Emerging vs. Jpmorgan International Value | Jpmorgan Emerging vs. Jpmorgan Equity Fund | Jpmorgan Emerging vs. Jpmorgan Mid Cap | Jpmorgan Emerging vs. Jpmorgan High Yield |
| Secured Options vs. Artisan High Income | Secured Options vs. Ambrus Core Bond | Secured Options vs. Multisector Bond Sma | Secured Options vs. Franklin High Yield |
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 Stocks Directory module to find actively traded stocks across global markets.
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