Correlation Between Jpmorgan Equity and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity and Ashmore Emerging 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 Equity and Ashmore Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Income and Ashmore Emerging Markets, you can compare the effects of market volatilities on Jpmorgan Equity and Ashmore Emerging 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 Equity with a short position of Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and Ashmore Emerging.
Diversification Opportunities for Jpmorgan Equity and Ashmore Emerging
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JPMORGAN and Ashmore is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Income and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets and Jpmorgan Equity 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 Equity Income are associated (or correlated) with Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and Ashmore Emerging
Assuming the 90 days horizon Jpmorgan Equity Income is expected to generate 0.94 times more return on investment than Ashmore Emerging. However, Jpmorgan Equity Income is 1.06 times less risky than Ashmore Emerging. It trades about 0.38 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about -0.23 per unit of risk. If you would invest 2,587 in Jpmorgan Equity Income on September 4, 2024 and sell it today you would earn a total of 163.00 from holding Jpmorgan Equity Income or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jpmorgan Equity Income vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Jpmorgan Equity Income |
| Ashmore Emerging Markets |
Jpmorgan Equity and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and Ashmore Emerging
The main advantage of trading using opposite Jpmorgan Equity and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 |
| Ashmore Emerging vs. Mirova Global Green | Ashmore Emerging vs. Semiconductor Ultrasector Profund | Ashmore Emerging vs. William Blair Large | Ashmore Emerging vs. Fm Investments Large |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |