Correlation Between JPMorgan Municipal and AB Active
Can any of the company-specific risk be diversified away by investing in both JPMorgan Municipal 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 JPMorgan Municipal and AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Municipal and AB Active ETFs,, you can compare the effects of market volatilities on JPMorgan Municipal 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 JPMorgan Municipal with a short position of AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Municipal and AB Active.
Diversification Opportunities for JPMorgan Municipal and AB Active
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and TAFM is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Municipal 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 JPMorgan Municipal 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 Municipal 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 JPMorgan Municipal i.e., JPMorgan Municipal and AB Active go up and down completely randomly.
Pair Corralation between JPMorgan Municipal and AB Active
Given the investment horizon of 90 days JPMorgan Municipal is expected to generate 1.18 times less return on investment than AB Active. But when comparing it to its historical volatility, JPMorgan Municipal is 1.53 times less risky than AB Active. It trades about 0.12 of its potential returns per unit of risk. AB Active ETFs, is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,538 in AB Active ETFs, on August 29, 2024 and sell it today you would earn a total of 23.00 from holding AB Active ETFs, or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Municipal vs. AB Active ETFs,
Performance |
| Timeline |
| JPMorgan Municipal |
| AB Active ETFs, |
JPMorgan Municipal and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Municipal and AB Active
The main advantage of trading using opposite JPMorgan Municipal and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Municipal 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.| JPMorgan Municipal vs. JPMorgan Ultra Short Municipal | JPMorgan Municipal vs. JPMorgan USD Emerging | JPMorgan Municipal vs. iShares Short Maturity | JPMorgan Municipal vs. IQ MacKay Municipal |
| AB Active vs. SSGA Active Trust | AB Active vs. SPDR Nuveen Municipal | AB Active vs. Xtrackers California Municipal | AB Active vs. iShares Short Maturity |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |