Correlation Between JPMorgan ETFs and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on JPMorgan ETFs and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Liontrust Asset.
Diversification Opportunities for JPMorgan ETFs and Liontrust Asset
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPMorgan and Liontrust is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Liontrust Asset go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Liontrust Asset
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.34 times more return on investment than Liontrust Asset. However, JPMorgan ETFs ICAV is 2.98 times less risky than Liontrust Asset. It trades about 0.17 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. Liontrust Asset Management
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Liontrust Asset Mana |
JPMorgan ETFs and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Liontrust Asset
The main advantage of trading using opposite JPMorgan ETFs and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset'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 |
| Liontrust Asset vs. Empire Metals Limited | Liontrust Asset vs. Critical Metals Plc | Liontrust Asset vs. Aeorema Communications Plc | Liontrust Asset vs. Sovereign Metals |
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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