Correlation Between JPMorgan Ultra and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both JPMorgan Ultra and Guinness Atkinson 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 Guinness Atkinson 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 Guinness Atkinson Asset, you can compare the effects of market volatilities on JPMorgan Ultra and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Ultra and Guinness Atkinson.
Diversification Opportunities for JPMorgan Ultra and Guinness Atkinson
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Guinness is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Ultra Short Income and Guinness Atkinson Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asset 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Asset has no effect on the direction of JPMorgan Ultra i.e., JPMorgan Ultra and Guinness Atkinson go up and down completely randomly.
Pair Corralation between JPMorgan Ultra and Guinness Atkinson
If you would invest 5,023 in JPMorgan Ultra Short Income on September 13, 2024 and sell it today you would earn a total of 27.00 from holding JPMorgan Ultra Short Income or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
JPMorgan Ultra Short Income vs. Guinness Atkinson Asset
Performance |
| Timeline |
| JPMorgan Ultra Short |
| Guinness Atkinson Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
JPMorgan Ultra and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Ultra and Guinness Atkinson
The main advantage of trading using opposite JPMorgan Ultra and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Ultra position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| JPMorgan Ultra vs. iShares Ultra Short Term | JPMorgan Ultra vs. PIMCO Enhanced Short | JPMorgan Ultra vs. iShares Short Maturity | JPMorgan Ultra vs. iShares Short Treasury |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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