Correlation Between JPMorgan ETFs and Bank of Ireland
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Bank of Ireland 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 Bank of Ireland 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 Bank of Ireland, you can compare the effects of market volatilities on JPMorgan ETFs and Bank of Ireland 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 Bank of Ireland. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Bank of Ireland.
Diversification Opportunities for JPMorgan ETFs and Bank of Ireland
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and Bank is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Bank of Ireland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Ireland 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 Bank of Ireland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Ireland has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Bank of Ireland go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Bank of Ireland
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.28 times more return on investment than Bank of Ireland. However, JPMorgan ETFs ICAV is 3.56 times less risky than Bank of Ireland. It trades about 0.08 of its potential returns per unit of risk. Bank of Ireland is currently generating about -0.12 per unit of risk. If you would invest 310,090 in JPMorgan ETFs ICAV on August 30, 2024 and sell it today you would earn a total of 3,230 from holding JPMorgan ETFs ICAV or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. Bank of Ireland
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Bank of Ireland |
JPMorgan ETFs and Bank of Ireland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Bank of Ireland
The main advantage of trading using opposite JPMorgan ETFs and Bank of Ireland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Bank of Ireland 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 Bank of Ireland will offset losses from the drop in Bank of Ireland's long position.| JPMorgan ETFs vs. Leverage Shares 3x | JPMorgan ETFs vs. Leverage Shares 3x | JPMorgan ETFs vs. GraniteShares 3x Short | JPMorgan ETFs vs. Leverage Shares 3x |
| Bank of Ireland vs. Metals Exploration Plc | Bank of Ireland vs. Neometals | Bank of Ireland vs. GreenX Metals | Bank of Ireland vs. Jacquet Metal Service |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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