Correlation Between Roundhill Investments and JPMorgan Climate
Can any of the company-specific risk be diversified away by investing in both Roundhill Investments and JPMorgan Climate 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 Roundhill Investments and JPMorgan Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roundhill Investments and JPMorgan Climate Change, you can compare the effects of market volatilities on Roundhill Investments and JPMorgan Climate 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 Roundhill Investments with a short position of JPMorgan Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Investments and JPMorgan Climate.
Diversification Opportunities for Roundhill Investments and JPMorgan Climate
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Roundhill and JPMorgan is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Investments and JPMorgan Climate Change in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Climate Change and Roundhill Investments 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 Roundhill Investments are associated (or correlated) with JPMorgan Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Climate Change has no effect on the direction of Roundhill Investments i.e., Roundhill Investments and JPMorgan Climate go up and down completely randomly.
Pair Corralation between Roundhill Investments and JPMorgan Climate
Given the investment horizon of 90 days Roundhill Investments is expected to under-perform the JPMorgan Climate. In addition to that, Roundhill Investments is 1.02 times more volatile than JPMorgan Climate Change. It trades about -0.02 of its total potential returns per unit of risk. JPMorgan Climate Change is currently generating about 0.04 per unit of volatility. If you would invest 4,131 in JPMorgan Climate Change on September 12, 2024 and sell it today you would earn a total of 544.00 from holding JPMorgan Climate Change or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.14% |
| Values | Daily Returns |
Roundhill Investments vs. JPMorgan Climate Change
Performance |
| Timeline |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JPMorgan Climate Change |
Roundhill Investments and JPMorgan Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roundhill Investments and JPMorgan Climate
The main advantage of trading using opposite Roundhill Investments and JPMorgan Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Investments position performs unexpectedly, JPMorgan Climate 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 JPMorgan Climate will offset losses from the drop in JPMorgan Climate's long position.| Roundhill Investments vs. Vanguard Mid Cap Growth | Roundhill Investments vs. iShares Russell Mid Cap | Roundhill Investments vs. ARK Innovation ETF | Roundhill Investments vs. iShares SP Mid Cap |
| JPMorgan Climate vs. ProShares Big Data | JPMorgan Climate vs. Direxion Auspice Broad | JPMorgan Climate vs. Eastern Co | JPMorgan Climate vs. American Century 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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