Correlation Between JPMorgan Fundamental and Roundhill ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and Roundhill 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 Roundhill 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 Roundhill ETF Trust, you can compare the effects of market volatilities on JPMorgan Fundamental and Roundhill 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 Roundhill ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and Roundhill ETF.
Diversification Opportunities for JPMorgan Fundamental and Roundhill ETF
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Roundhill is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and Roundhill ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill 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 Roundhill ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill ETF Trust has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and Roundhill ETF go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and Roundhill ETF
Given the investment horizon of 90 days JPMorgan Fundamental Data is expected to generate 1.35 times more return on investment than Roundhill ETF. However, JPMorgan Fundamental is 1.35 times more volatile than Roundhill ETF Trust. It trades about 0.4 of its potential returns per unit of risk. Roundhill ETF Trust is currently generating about 0.37 per unit of risk. If you would invest 5,549 in JPMorgan Fundamental Data on September 4, 2024 and sell it today you would earn a total of 445.00 from holding JPMorgan Fundamental Data or generate 8.02% 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. Roundhill ETF Trust
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| Roundhill ETF Trust |
JPMorgan Fundamental and Roundhill ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and Roundhill ETF
The main advantage of trading using opposite JPMorgan Fundamental and Roundhill ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, Roundhill 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 Roundhill ETF will offset losses from the drop in Roundhill 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 |
| Roundhill ETF vs. FT Vest Equity | Roundhill ETF vs. Northern Lights | Roundhill ETF vs. Dimensional International High | Roundhill 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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