Correlation Between JPM Europe and JPM Emerging
Can any of the company-specific risk be diversified away by investing in both JPM Europe and JPM Emerging 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 JPM Europe and JPM Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPM Europe Equity and JPM Emerging Markets, you can compare the effects of market volatilities on JPM Europe and JPM Emerging 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 Europe with a short position of JPM Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM Europe and JPM Emerging.
Diversification Opportunities for JPM Europe and JPM Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPM and JPM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JPM Europe Equity and JPM Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM Emerging Markets and JPM Europe 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 Europe Equity are associated (or correlated) with JPM Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM Emerging Markets has no effect on the direction of JPM Europe i.e., JPM Europe and JPM Emerging go up and down completely randomly.
Pair Corralation between JPM Europe and JPM Emerging
If you would invest 3,685 in JPM Emerging Markets on September 2, 2024 and sell it today you would earn a total of 15.00 from holding JPM Emerging Markets or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
JPM Europe Equity vs. JPM Emerging Markets
Performance |
| Timeline |
| JPM Europe Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JPM Emerging Markets |
JPM Europe and JPM Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM Europe and JPM Emerging
The main advantage of trading using opposite JPM Europe and JPM Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM Europe position performs unexpectedly, JPM Emerging 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 JPM Emerging will offset losses from the drop in JPM Emerging's long position.| JPM Europe vs. JPM Emerging Markets | JPM Europe vs. Esfera Robotics R | JPM Europe vs. R co Valor F | JPM Europe vs. CM AM Monplus NE |
| JPM Emerging vs. JPM America Equity | JPM Emerging vs. JPM Europe Small | JPM Emerging vs. Esfera Robotics R | JPM Emerging vs. R co Valor F |
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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