Correlation Between JPMorgan ETFs and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Allianz Technology 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 Allianz Technology 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 Allianz Technology Trust, you can compare the effects of market volatilities on JPMorgan ETFs and Allianz Technology 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 Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Allianz Technology.
Diversification Opportunities for JPMorgan ETFs and Allianz Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Allianz is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Allianz Technology Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Technology Trust 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 Allianz Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Technology Trust has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Allianz Technology go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Allianz Technology
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.33 times more return on investment than Allianz Technology. However, JPMorgan ETFs ICAV is 3.02 times less risky than Allianz Technology. It trades about 0.17 of its potential returns per unit of risk. Allianz Technology Trust is currently generating about -0.09 per unit of risk. If you would invest 319,185 in JPMorgan ETFs ICAV on November 28, 2024 and sell it today you would earn a total of 7,080 from holding JPMorgan ETFs ICAV or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. Allianz Technology Trust
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Allianz Technology Trust |
JPMorgan ETFs and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Allianz Technology
The main advantage of trading using opposite JPMorgan ETFs and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Allianz Technology 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 Allianz Technology will offset losses from the drop in Allianz Technology'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 |
| Allianz Technology vs. Sealed Air Corp | Allianz Technology vs. Fortune Brands Home | Allianz Technology vs. Wizz Air Holdings | Allianz Technology vs. Systemair AB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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