Correlation Between JPMorgan Nasdaq and Etn Fr
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and Etn Fr 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 Nasdaq and Etn Fr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Nasdaq Equity and Etn Fr Colruyt, you can compare the effects of market volatilities on JPMorgan Nasdaq and Etn Fr 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 Nasdaq with a short position of Etn Fr. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and Etn Fr.
Diversification Opportunities for JPMorgan Nasdaq and Etn Fr
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Etn is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and Etn Fr Colruyt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etn Fr Colruyt and JPMorgan Nasdaq 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 Nasdaq Equity are associated (or correlated) with Etn Fr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etn Fr Colruyt has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and Etn Fr go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and Etn Fr
Given the investment horizon of 90 days JPMorgan Nasdaq is expected to generate 2.68 times less return on investment than Etn Fr. But when comparing it to its historical volatility, JPMorgan Nasdaq Equity is 4.25 times less risky than Etn Fr. It trades about 0.14 of its potential returns per unit of risk. Etn Fr Colruyt is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Etn Fr Colruyt on September 1, 2024 and sell it today you would earn a total of 2,270 from holding Etn Fr Colruyt or generate 103.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.03% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. Etn Fr Colruyt
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| Etn Fr Colruyt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Nasdaq and Etn Fr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and Etn Fr
The main advantage of trading using opposite JPMorgan Nasdaq and Etn Fr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, Etn Fr 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 Etn Fr will offset losses from the drop in Etn Fr's long position.| JPMorgan Nasdaq vs. JPMorgan Equity Premium | JPMorgan Nasdaq vs. Global X SP | JPMorgan Nasdaq vs. Amplify CWP Enhanced | JPMorgan Nasdaq vs. Global X Russell |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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