Correlation Between JPM Global and Cobas Global
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By analyzing existing cross correlation between JPM Global Natural and Cobas Global PP, you can compare the effects of market volatilities on JPM Global and Cobas Global 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 JPM Global with a short position of Cobas Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM Global and Cobas Global.
Diversification Opportunities for JPM Global and Cobas Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPM and Cobas is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding JPM Global Natural and Cobas Global PP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cobas Global PP and JPM Global 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 JPM Global Natural are associated (or correlated) with Cobas Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cobas Global PP has no effect on the direction of JPM Global i.e., JPM Global and Cobas Global go up and down completely randomly.
Pair Corralation between JPM Global and Cobas Global
Assuming the 90 days trading horizon JPM Global is expected to generate 4.09 times less return on investment than Cobas Global. In addition to that, JPM Global is 1.59 times more volatile than Cobas Global PP. It trades about 0.06 of its total potential returns per unit of risk. Cobas Global PP is currently generating about 0.37 per unit of volatility. If you would invest 11,677 in Cobas Global PP on September 14, 2024 and sell it today you would earn a total of 489.00 from holding Cobas Global PP or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
JPM Global Natural vs. Cobas Global PP
Performance |
| Timeline |
| JPM Global Natural |
| Cobas Global PP |
JPM Global and Cobas Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM Global and Cobas Global
The main advantage of trading using opposite JPM Global and Cobas Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM Global position performs unexpectedly, Cobas Global 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 Cobas Global will offset losses from the drop in Cobas Global's long position.| JPM Global vs. Groupama Entreprises N | JPM Global vs. Renaissance Europe C | JPM Global vs. Superior Plus Corp | JPM Global vs. Origin Agritech |
| Cobas Global vs. Groupama Entreprises N | Cobas Global vs. Renaissance Europe C | Cobas Global vs. Superior Plus Corp | Cobas Global vs. Origin Agritech |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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