Correlation Between JPMorgan ETFs and Supermarket Income
Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Supermarket Income 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 Supermarket Income 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 Supermarket Income REIT, you can compare the effects of market volatilities on JPMorgan ETFs and Supermarket Income 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 Supermarket Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Supermarket Income.
Diversification Opportunities for JPMorgan ETFs and Supermarket Income
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and Supermarket is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Supermarket Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermarket Income REIT 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 Supermarket Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermarket Income REIT has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Supermarket Income go up and down completely randomly.
Pair Corralation between JPMorgan ETFs and Supermarket Income
Assuming the 90 days trading horizon JPMorgan ETFs is expected to generate 3.91 times less return on investment than Supermarket Income. But when comparing it to its historical volatility, JPMorgan ETFs ICAV is 1.66 times less risky than Supermarket Income. It trades about 0.16 of its potential returns per unit of risk. Supermarket Income REIT is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 6,587 in Supermarket Income REIT on November 27, 2024 and sell it today you would earn a total of 533.00 from holding Supermarket Income REIT or generate 8.09% 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. Supermarket Income REIT
Performance |
| Timeline |
| JPMorgan ETFs ICAV |
| Supermarket Income REIT |
JPMorgan ETFs and Supermarket Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan ETFs and Supermarket Income
The main advantage of trading using opposite JPMorgan ETFs and Supermarket Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan ETFs position performs unexpectedly, Supermarket Income 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 Supermarket Income will offset losses from the drop in Supermarket Income'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 |
| Supermarket Income vs. Amedeo Air Four | Supermarket Income vs. Allianz Technology Trust | Supermarket Income vs. Norwegian Air Shuttle | Supermarket Income vs. Made Tech Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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