Correlation Between JPMorgan ETFs and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on JPMorgan ETFs and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Jupiter Fund.
Diversification Opportunities for JPMorgan ETFs and Jupiter Fund
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Jupiter is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Jupiter Fund go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Jupiter Fund
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to under-perform the Jupiter Fund. But the etf apears to be less risky and, when comparing its historical volatility, JPMorgan ETFs ICAV is 1.87 times less risky than Jupiter Fund. The etf trades about 0.0 of its potential returns per unit of risk. The Jupiter Fund Management is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,140 in Jupiter Fund Management on August 29, 2024 and sell it today you would earn a total of 190.00 from holding Jupiter Fund Management or generate 2.33% 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. Jupiter Fund Management
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Jupiter Fund Management |
JPMorgan ETFs and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Jupiter Fund
The main advantage of trading using opposite JPMorgan ETFs and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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