Correlation Between JPMorgan Fundamental and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and Natixis ETF 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 Natixis ETF 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 Natixis ETF Trust, you can compare the effects of market volatilities on JPMorgan Fundamental and Natixis ETF 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 Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and Natixis ETF.
Diversification Opportunities for JPMorgan Fundamental and Natixis ETF
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Natixis is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust 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 Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and Natixis ETF go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and Natixis ETF
Given the investment horizon of 90 days JPMorgan Fundamental is expected to generate 1.55 times less return on investment than Natixis ETF. But when comparing it to its historical volatility, JPMorgan Fundamental Data is 1.51 times less risky than Natixis ETF. It trades about 0.24 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,437 in Natixis ETF Trust on September 12, 2024 and sell it today you would earn a total of 551.00 from holding Natixis ETF Trust or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. Natixis ETF Trust
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| Natixis ETF Trust |
JPMorgan Fundamental and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and Natixis ETF
The main advantage of trading using opposite JPMorgan Fundamental and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF'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 |
| Natixis ETF vs. FT Vest Equity | Natixis ETF vs. Northern Lights | Natixis ETF vs. Dimensional International High | Natixis ETF vs. JPMorgan Fundamental Data |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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