Correlation Between JPMorgan USD and Virtus ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan USD and Virtus 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 USD and Virtus ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan USD Emerging and Virtus ETF Trust, you can compare the effects of market volatilities on JPMorgan USD and Virtus 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 USD with a short position of Virtus ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan USD and Virtus ETF.
Diversification Opportunities for JPMorgan USD and Virtus ETF
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Virtus is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan USD Emerging and Virtus ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus ETF Trust and JPMorgan USD 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 USD Emerging are associated (or correlated) with Virtus ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus ETF Trust has no effect on the direction of JPMorgan USD i.e., JPMorgan USD and Virtus ETF go up and down completely randomly.
Pair Corralation between JPMorgan USD and Virtus ETF
Given the investment horizon of 90 days JPMorgan USD Emerging is expected to generate 5.36 times more return on investment than Virtus ETF. However, JPMorgan USD is 5.36 times more volatile than Virtus ETF Trust. It trades about 0.18 of its potential returns per unit of risk. Virtus ETF Trust is currently generating about 0.46 per unit of risk. If you would invest 3,813 in JPMorgan USD Emerging on November 2, 2024 and sell it today you would earn a total of 43.00 from holding JPMorgan USD Emerging or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan USD Emerging vs. Virtus ETF Trust
Performance |
| Timeline |
| JPMorgan USD Emerging |
| Virtus ETF Trust |
JPMorgan USD and Virtus ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan USD and Virtus ETF
The main advantage of trading using opposite JPMorgan USD and Virtus ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan USD position performs unexpectedly, Virtus 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 Virtus ETF will offset losses from the drop in Virtus ETF's long position.| JPMorgan USD vs. SPDR Bloomberg Emerging | JPMorgan USD vs. SPDR Bloomberg Barclays | JPMorgan USD vs. VanEck JP Morgan | JPMorgan USD vs. SPDR Bloomberg International |
| Virtus ETF vs. Franklin Liberty Senior | Virtus ETF vs. Virtus Newfleet Multi Sector | Virtus ETF vs. Pacer Pacific Asset | Virtus ETF vs. JPMorgan USD Emerging |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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