Correlation Between Guinness Atkinson and JP Morgan
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and JP Morgan 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 Guinness Atkinson and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Asset and JP Morgan Exchange Traded, you can compare the effects of market volatilities on Guinness Atkinson and JP Morgan 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 Guinness Atkinson with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and JP Morgan.
Diversification Opportunities for Guinness Atkinson and JP Morgan
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guinness and JCTR is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asset and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange and Guinness Atkinson 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 Guinness Atkinson Asset are associated (or correlated) with JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Exchange has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and JP Morgan go up and down completely randomly.
Pair Corralation between Guinness Atkinson and JP Morgan
If you would invest 8,106 in JP Morgan Exchange Traded on September 13, 2024 and sell it today you would earn a total of 136.76 from holding JP Morgan Exchange Traded or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Guinness Atkinson Asset vs. JP Morgan Exchange Traded
Performance |
| Timeline |
| Guinness Atkinson Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| JP Morgan Exchange |
Guinness Atkinson and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and JP Morgan
The main advantage of trading using opposite Guinness Atkinson and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan's long position.| Guinness Atkinson vs. SmartETFs Smart Transportation | Guinness Atkinson vs. Global X Thematic | Guinness Atkinson vs. Franklin Disruptive Commerce |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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