Correlation Between JPMorgan Chase and DBX ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and DBX ETF 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 Chase and DBX ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and DBX ETF Trust, you can compare the effects of market volatilities on JPMorgan Chase and DBX ETF 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 Chase with a short position of DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and DBX ETF.
Diversification Opportunities for JPMorgan Chase and DBX ETF
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and DBX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and DBX ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX ETF Trust and JPMorgan Chase 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 Chase Co are associated (or correlated) with DBX ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX ETF Trust has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and DBX ETF go up and down completely randomly.
Pair Corralation between JPMorgan Chase and DBX ETF
If you would invest 21,978 in JPMorgan Chase Co on September 5, 2024 and sell it today you would earn a total of 2,504 from holding JPMorgan Chase Co or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 9.09% |
| Values | Daily Returns |
JPMorgan Chase Co vs. DBX ETF Trust
Performance |
| Timeline |
| JPMorgan Chase |
| DBX ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
JPMorgan Chase and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and DBX ETF
The main advantage of trading using opposite JPMorgan Chase and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, DBX ETF 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 DBX ETF will offset losses from the drop in DBX ETF's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Aquagold International | JPMorgan Chase vs. Thrivent High Yield | JPMorgan Chase vs. Morningstar Unconstrained Allocation |
| DBX ETF vs. Xtrackers MSCI EAFE | DBX ETF vs. SPDR MSCI Emerging | DBX ETF vs. NuShares ETF Trust | DBX ETF vs. Xtrackers MSCI USA |
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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