Correlation Between Jpmorgan Emerging and 361 Global
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and 361 Global 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 361 Global 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 361 Global Longshort, you can compare the effects of market volatilities on Jpmorgan Emerging and 361 Global 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 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and 361 Global.
Diversification Opportunities for Jpmorgan Emerging and 361 Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jpmorgan and 361 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort 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 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and 361 Global go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and 361 Global
Assuming the 90 days horizon Jpmorgan Emerging is expected to generate 1.18 times less return on investment than 361 Global. In addition to that, Jpmorgan Emerging is 1.9 times more volatile than 361 Global Longshort. It trades about 0.02 of its total potential returns per unit of risk. 361 Global Longshort is currently generating about 0.05 per unit of volatility. If you would invest 1,134 in 361 Global Longshort on September 4, 2024 and sell it today you would earn a total of 143.00 from holding 361 Global Longshort or generate 12.61% 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. 361 Global Longshort
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| 361 Global Longshort |
Jpmorgan Emerging and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and 361 Global
The main advantage of trading using opposite Jpmorgan Emerging and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, 361 Global 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 361 Global will offset losses from the drop in 361 Global's long position.| Jpmorgan Emerging vs. Amg Managers Centersquare | Jpmorgan Emerging vs. Jhancock Real Estate | Jpmorgan Emerging vs. Virtus Real Estate | Jpmorgan Emerging vs. Great West Real Estate |
| 361 Global vs. Aqr Large Cap | 361 Global vs. Americafirst Large Cap | 361 Global vs. Siit Large Cap | 361 Global vs. Qs Large Cap |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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