Correlation Between JPMorgan ETFs and OTP Bank
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and OTP Bank 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 OTP Bank 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 OTP Bank Nyrt, you can compare the effects of market volatilities on JPMorgan ETFs and OTP Bank 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 OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and OTP Bank.
Diversification Opportunities for JPMorgan ETFs and OTP Bank
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPMorgan and OTP is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt 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 OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and OTP Bank go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and OTP Bank
If you would invest 319,185 in JPMorgan ETFs ICAV on November 27, 2024 and sell it today you would earn a total of 6,390 from holding JPMorgan ETFs ICAV or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. OTP Bank Nyrt
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| OTP Bank Nyrt |
JPMorgan ETFs and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and OTP Bank
The main advantage of trading using opposite JPMorgan ETFs and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, OTP Bank 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 OTP Bank will offset losses from the drop in OTP Bank's long position.| JPMorgan ETFs vs. JPMorgan ETFs ICAV | JPMorgan ETFs vs. JPMorgan ETFs ICAV | JPMorgan ETFs vs. JPMorgan ETFs Ireland | JPMorgan ETFs vs. JPMorgan ETFs Ireland |
| OTP Bank vs. Ion Beam Applications | OTP Bank vs. Datagroup SE | OTP Bank vs. Ruffer Investment | OTP Bank vs. Monks Investment Trust |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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