Correlation Between JPMorgan ETFs and JPMorgan
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and JPMorgan 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 ETFs and JPMorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan ETFs ICAV and JPMorgan, you can compare the effects of market volatilities on JPMorgan ETFs and JPMorgan 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 ETFs with a short position of JPMorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and JPMorgan.
Diversification Opportunities for JPMorgan ETFs and JPMorgan
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and JPMorgan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and JPMorgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan and JPMorgan ETFs 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 ETFs ICAV are associated (or correlated) with JPMorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and JPMorgan go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and JPMorgan
Assuming the 90 days horizon JPMorgan ETFs is expected to generate 2.08 times less return on investment than JPMorgan. But when comparing it to its historical volatility, JPMorgan ETFs ICAV is 5.43 times less risky than JPMorgan. It trades about 0.11 of its potential returns per unit of risk. JPMorgan is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,117 in JPMorgan on September 3, 2024 and sell it today you would earn a total of 306.00 from holding JPMorgan or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.91% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. JPMorgan
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| JPMorgan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan ETFs and JPMorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and JPMorgan
The main advantage of trading using opposite JPMorgan ETFs and JPMorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, JPMorgan 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 JPMorgan will offset losses from the drop in JPMorgan's long position.The idea behind JPMorgan ETFs ICAV and JPMorgan pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JPMorgan vs. JPMorgan ETFs ICAV | JPMorgan vs. JPMorgan ETFs ICAV | JPMorgan vs. JPMorgan BetaBuilders Aggregate |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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