Correlation Between JP Morgan and AB Active
Can any of the company-specific risk be diversified away by investing in both JP Morgan and AB Active 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 AB Active 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 AB Active ETFs,, you can compare the effects of market volatilities on JP Morgan and AB Active 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 AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and AB Active.
Diversification Opportunities for JP Morgan and AB Active
Very poor diversification
The 3 months correlation between JIRE and ILOW is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Exchange Traded and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of JP Morgan i.e., JP Morgan and AB Active go up and down completely randomly.
Pair Corralation between JP Morgan and AB Active
Given the investment horizon of 90 days JP Morgan Exchange Traded is expected to under-perform the AB Active. In addition to that, JP Morgan is 1.19 times more volatile than AB Active ETFs,. It trades about -0.03 of its total potential returns per unit of risk. AB Active ETFs, is currently generating about 0.02 per unit of volatility. If you would invest 3,500 in AB Active ETFs, on September 1, 2024 and sell it today you would earn a total of 52.00 from holding AB Active ETFs, or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 78.74% |
| Values | Daily Returns |
JP Morgan Exchange Traded vs. AB Active ETFs,
Performance |
| Timeline |
| JP Morgan Exchange |
| AB Active ETFs, |
JP Morgan and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JP Morgan and AB Active
The main advantage of trading using opposite JP Morgan and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JP Morgan position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active'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 |
| AB Active vs. iShares ESG Aggregate | AB Active vs. SPDR MSCI Emerging | AB Active vs. Aquagold International | AB Active vs. Thrivent 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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