Correlation Between JPMorgan ETFs and Odyssean Investment
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Odyssean Investment 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 Odyssean Investment 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 Odyssean Investment Trust, you can compare the effects of market volatilities on JPMorgan ETFs and Odyssean Investment 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 Odyssean Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Odyssean Investment.
Diversification Opportunities for JPMorgan ETFs and Odyssean Investment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and Odyssean is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Odyssean Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssean Investment 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 Odyssean Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssean Investment Trust has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Odyssean Investment go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Odyssean Investment
Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.37 times more return on investment than Odyssean Investment. However, JPMorgan ETFs ICAV is 2.68 times less risky than Odyssean Investment. It trades about 0.08 of its potential returns per unit of risk. Odyssean Investment Trust is currently generating about 0.01 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 | 100.0% |
| Values | Daily Returns |
JPMorgan ETFs ICAV vs. Odyssean Investment Trust
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Odyssean Investment Trust |
JPMorgan ETFs and Odyssean Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Odyssean Investment
The main advantage of trading using opposite JPMorgan ETFs and Odyssean Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Odyssean Investment 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 Odyssean Investment will offset losses from the drop in Odyssean Investment'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 |
| Odyssean Investment vs. Samsung Electronics Co | Odyssean Investment vs. Samsung Electronics Co | Odyssean Investment vs. Hyundai Motor | Odyssean Investment vs. Toyota Motor Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |