Correlation Between JPMorgan Fundamental and AB Active
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and AB Active 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 Fundamental and AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Fundamental Data and AB Active ETFs,, you can compare the effects of market volatilities on JPMorgan Fundamental and AB Active 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 Fundamental with a short position of AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and AB Active.
Diversification Opportunities for JPMorgan Fundamental and AB Active
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and ILOW is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, and JPMorgan Fundamental 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 Fundamental Data are associated (or correlated) with AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and AB Active go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and AB Active
Given the investment horizon of 90 days JPMorgan Fundamental Data is expected to generate 0.91 times more return on investment than AB Active. However, JPMorgan Fundamental Data is 1.1 times less risky than AB Active. It trades about 0.26 of its potential returns per unit of risk. AB Active ETFs, is currently generating about 0.03 per unit of risk. If you would invest 4,992 in JPMorgan Fundamental Data on September 13, 2024 and sell it today you would earn a total of 891.23 from holding JPMorgan Fundamental Data or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. AB Active ETFs,
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| AB Active ETFs, |
JPMorgan Fundamental and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and AB Active
The main advantage of trading using opposite JPMorgan Fundamental and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active's long position.| JPMorgan Fundamental vs. FT Vest Equity | JPMorgan Fundamental vs. Northern Lights | JPMorgan Fundamental vs. Dimensional International High | JPMorgan Fundamental vs. Matthews China Discovery |
| AB Active vs. iShares MSCI Intl | AB Active vs. iShares MSCI Intl | AB Active vs. iShares Currency Hedged | AB Active vs. iShares Edge MSCI |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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