Correlation Between JPM America and Nordea 1
Can any of the company-specific risk be diversified away by investing in both JPM America and Nordea 1 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 JPM America and Nordea 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPM America Equity and Nordea 1 SICAV, you can compare the effects of market volatilities on JPM America and Nordea 1 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 JPM America with a short position of Nordea 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM America and Nordea 1.
Diversification Opportunities for JPM America and Nordea 1
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPM and Nordea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JPM America Equity and Nordea 1 SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea 1 SICAV and JPM America 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 JPM America Equity are associated (or correlated) with Nordea 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea 1 SICAV has no effect on the direction of JPM America i.e., JPM America and Nordea 1 go up and down completely randomly.
Pair Corralation between JPM America and Nordea 1
If you would invest 36,978 in JPM America Equity on August 29, 2024 and sell it today you would earn a total of 7,363 from holding JPM America Equity or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JPM America Equity vs. Nordea 1 SICAV
Performance |
| Timeline |
| JPM America Equity |
| Nordea 1 SICAV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPM America and Nordea 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM America and Nordea 1
The main advantage of trading using opposite JPM America and Nordea 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM America position performs unexpectedly, Nordea 1 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 Nordea 1 will offset losses from the drop in Nordea 1's long position.| JPM America vs. Renaissance Europe C | JPM America vs. Superior Plus Corp | JPM America vs. Origin Agritech | JPM America vs. Identiv |
| Nordea 1 vs. Esfera Robotics R | Nordea 1 vs. R co Valor F | Nordea 1 vs. CM AM Monplus NE | Nordea 1 vs. IE00B0H4TS55 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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