Correlation Between JP Morgan and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both JP Morgan and Barclays ETN 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 JP Morgan and Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JP Morgan Exchange Traded and Barclays ETN FI, you can compare the effects of market volatilities on JP Morgan and Barclays ETN 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 JP Morgan with a short position of Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and Barclays ETN.
Diversification Opportunities for JP Morgan and Barclays ETN
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JIRE and Barclays is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Exchange Traded and Barclays ETN FI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN FI and JP Morgan 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 JP Morgan Exchange Traded are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN FI has no effect on the direction of JP Morgan i.e., JP Morgan and Barclays ETN go up and down completely randomly.
Pair Corralation between JP Morgan and Barclays ETN
Given the investment horizon of 90 days JP Morgan Exchange Traded is expected to generate 0.93 times more return on investment than Barclays ETN. However, JP Morgan Exchange Traded is 1.07 times less risky than Barclays ETN. It trades about 0.0 of its potential returns per unit of risk. Barclays ETN FI is currently generating about -0.02 per unit of risk. If you would invest 6,245 in JP Morgan Exchange Traded on September 3, 2024 and sell it today you would lose (21.00) from holding JP Morgan Exchange Traded or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JP Morgan Exchange Traded vs. Barclays ETN FI
Performance |
| Timeline |
| JP Morgan Exchange |
| Barclays ETN FI |
JP Morgan and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JP Morgan and Barclays ETN
The main advantage of trading using opposite JP Morgan and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JP Morgan position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| JP Morgan vs. JPMorgan Realty Income | JP Morgan vs. JPMorgan Market Expansion | JP Morgan vs. JPMorgan Emerging Markets | JP Morgan vs. JPMorgan BetaBuilders International |
| Barclays ETN vs. Freedom Day Dividend | Barclays ETN vs. iShares MSCI China | Barclays ETN vs. SmartETFs Dividend Builder | Barclays ETN vs. Tidal ETF Trust |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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