Correlation Between Jpmorgan Emerging and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging and Ep 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 Ep 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 Ep Emerging Markets, you can compare the effects of market volatilities on Jpmorgan Emerging and Ep 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Ep Emerging.
Diversification Opportunities for Jpmorgan Emerging and Ep Emerging
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMORGAN and EPEIX is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Ep Emerging go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Ep Emerging
Assuming the 90 days horizon Jpmorgan Emerging Markets is expected to generate 0.88 times more return on investment than Ep Emerging. However, Jpmorgan Emerging Markets is 1.14 times less risky than Ep Emerging. It trades about -0.25 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.22 per unit of risk. If you would invest 3,048 in Jpmorgan Emerging Markets on September 3, 2024 and sell it today you would lose (112.00) from holding Jpmorgan Emerging Markets or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Ep Emerging Markets
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Ep Emerging Markets |
Jpmorgan Emerging and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Ep Emerging
The main advantage of trading using opposite Jpmorgan Emerging and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging position performs unexpectedly, Ep 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Jpmorgan Emerging vs. Franklin Mutual Global | Jpmorgan Emerging vs. Templeton Growth Fund | Jpmorgan Emerging vs. Franklin Real Estate | Jpmorgan Emerging vs. HUMANA INC |
| Ep Emerging vs. Franklin Mutual Global | Ep Emerging vs. Templeton Growth Fund | Ep Emerging vs. Franklin Real Estate | Ep Emerging vs. HUMANA INC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |