Correlation Between JPMorgan ETFs and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC, you can compare the effects of market volatilities on JPMorgan ETFs and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Lendinvest PLC.
Diversification Opportunities for JPMorgan ETFs and Lendinvest PLC
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and Lendinvest is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Lendinvest PLC go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Lendinvest PLC
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to under-perform the Lendinvest PLC. But the etf apears to be less risky and, when comparing its historical volatility, JPMorgan ETFs ICAV is 1.69 times less risky than Lendinvest PLC. The etf trades about 0.0 of its potential returns per unit of risk. The Lendinvest PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Lendinvest PLC on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Lendinvest PLC or generate 1.92% 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. Lendinvest PLC
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Lendinvest PLC |
JPMorgan ETFs and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Lendinvest PLC
The main advantage of trading using opposite JPMorgan ETFs and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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