Correlation Between JPMorgan Ultra and Global X
Can any of the company-specific risk be diversified away by investing in both JPMorgan Ultra and Global X 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 Ultra and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Ultra Short Income and Global X Funds, you can compare the effects of market volatilities on JPMorgan Ultra and Global X 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 Ultra with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Ultra and Global X.
Diversification Opportunities for JPMorgan Ultra and Global X
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Global is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Ultra Short Income and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and JPMorgan Ultra 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 Ultra Short Income are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of JPMorgan Ultra i.e., JPMorgan Ultra and Global X go up and down completely randomly.
Pair Corralation between JPMorgan Ultra and Global X
Given the investment horizon of 90 days JPMorgan Ultra is expected to generate 260.48 times less return on investment than Global X. But when comparing it to its historical volatility, JPMorgan Ultra Short Income is 1924.78 times less risky than Global X. It trades about 0.55 of its potential returns per unit of risk. Global X Funds is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Global X Funds on September 1, 2024 and sell it today you would earn a total of 10,046 from holding Global X Funds or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 80.66% |
| Values | Daily Returns |
JPMorgan Ultra Short Income vs. Global X Funds
Performance |
| Timeline |
| JPMorgan Ultra Short |
| Global X Funds |
JPMorgan Ultra and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Ultra and Global X
The main advantage of trading using opposite JPMorgan Ultra and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Ultra position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| JPMorgan Ultra vs. iShares Interest Rate | JPMorgan Ultra vs. iShares Interest Rate | JPMorgan Ultra vs. iShares Edge Investment | JPMorgan Ultra vs. iShares Inflation Hedged |
| Global X vs. iShares Interest Rate | Global X vs. iShares Interest Rate | Global X vs. iShares Edge Investment | Global X vs. iShares Inflation Hedged |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |