Correlation Between JPMorgan ETFs and UBS Fund
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and UBS Fund 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 ETFs and UBS Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan ETFs ICAV and UBS Fund Solutions, you can compare the effects of market volatilities on JPMorgan ETFs and UBS Fund 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 ETFs with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and UBS Fund.
Diversification Opportunities for JPMorgan ETFs and UBS Fund
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and UBS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions and JPMorgan ETFs 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 ETFs ICAV are associated (or correlated) with UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and UBS Fund go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and UBS Fund
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.36 times more return on investment than UBS Fund. However, JPMorgan ETFs ICAV is 2.79 times less risky than UBS Fund. It trades about 0.17 of its potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.03 per unit of risk. If you would invest 9,536 in JPMorgan ETFs ICAV on September 2, 2024 and sell it today you would earn a total of 443.00 from holding JPMorgan ETFs ICAV or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. UBS Fund Solutions
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| UBS Fund Solutions |
JPMorgan ETFs and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and UBS Fund
The main advantage of trading using opposite JPMorgan ETFs and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, UBS Fund 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 UBS Fund will offset losses from the drop in UBS Fund's long position.| JPMorgan ETFs vs. UBS Fund Solutions | JPMorgan ETFs vs. Vanguard Funds Public | JPMorgan ETFs vs. iShares Core SP | JPMorgan ETFs vs. iShares Core MSCI |
| UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund Solutions |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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