Correlation Between JPM Global and CM AM
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By analyzing existing cross correlation between JPM Global Natural and CM AM Monplus NE, you can compare the effects of market volatilities on JPM Global and CM AM 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 CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM Global and CM AM.
Diversification Opportunities for JPM Global and CM AM
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPM and 0P0001F96C is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding JPM Global Natural and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus 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 CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of JPM Global i.e., JPM Global and CM AM go up and down completely randomly.
Pair Corralation between JPM Global and CM AM
Assuming the 90 days trading horizon JPM Global Natural is expected to generate 132.28 times more return on investment than CM AM. However, JPM Global is 132.28 times more volatile than CM AM Monplus NE. It trades about 0.15 of its potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.33 per unit of risk. If you would invest 2,111 in JPM Global Natural on September 2, 2024 and sell it today you would earn a total of 71.00 from holding JPM Global Natural or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPM Global Natural vs. CM AM Monplus NE
Performance |
| Timeline |
| JPM Global Natural |
| CM AM Monplus |
JPM Global and CM AM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM Global and CM AM
The main advantage of trading using opposite JPM Global and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM Global position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.| JPM Global vs. Azvalor Global Value | JPM Global vs. BGF Global Allocation | JPM Global vs. Cobas Global PP | JPM Global vs. Aberdeen Global Asian |
| CM AM vs. Groupama Entreprises N | CM AM vs. Renaissance Europe C | CM AM vs. Superior Plus Corp | CM AM 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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