Correlation Between JPMorgan Fundamental and DBX ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and DBX 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 DBX 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 DBX ETF Trust, you can compare the effects of market volatilities on JPMorgan Fundamental and DBX 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 DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and DBX ETF.
Diversification Opportunities for JPMorgan Fundamental and DBX ETF
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and DBX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and DBX ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX 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 DBX ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX ETF Trust has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and DBX ETF go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and DBX ETF
Given the investment horizon of 90 days JPMorgan Fundamental Data is expected to generate 0.87 times more return on investment than DBX ETF. However, JPMorgan Fundamental Data is 1.15 times less risky than DBX ETF. It trades about 0.0 of its potential returns per unit of risk. DBX ETF Trust is currently generating about -0.09 per unit of risk. If you would invest 5,814 in JPMorgan Fundamental Data on October 26, 2024 and sell it today you would lose (1.13) from holding JPMorgan Fundamental Data or give up 0.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. DBX ETF Trust
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| DBX ETF Trust |
JPMorgan Fundamental and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and DBX ETF
The main advantage of trading using opposite JPMorgan Fundamental and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, DBX 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 DBX ETF will offset losses from the drop in DBX ETF's long position.| JPMorgan Fundamental vs. Vanguard Mid Cap Index | JPMorgan Fundamental vs. SPDR SP 400 | JPMorgan Fundamental vs. SPDR SP 400 | JPMorgan Fundamental vs. Direxion Daily Mid |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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