Correlation Between Sit Emerging and Jpmorgan Emerging
Can any of the company-specific risk be diversified away by investing in both Sit Emerging and Jpmorgan 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 Sit Emerging and Jpmorgan Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Emerging Markets and Jpmorgan Emerging Markets, you can compare the effects of market volatilities on Sit Emerging and Jpmorgan 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 Sit Emerging with a short position of Jpmorgan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Emerging and Jpmorgan Emerging.
Diversification Opportunities for Sit Emerging and Jpmorgan Emerging
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sit and Jpmorgan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sit Emerging Markets and Jpmorgan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Emerging Markets and Sit Emerging 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 Sit Emerging Markets are associated (or correlated) with Jpmorgan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Emerging Markets has no effect on the direction of Sit Emerging i.e., Sit Emerging and Jpmorgan Emerging go up and down completely randomly.
Pair Corralation between Sit Emerging and Jpmorgan Emerging
Assuming the 90 days horizon Sit Emerging Markets is expected to generate 1.26 times more return on investment than Jpmorgan Emerging. However, Sit Emerging is 1.26 times more volatile than Jpmorgan Emerging Markets. It trades about 0.3 of its potential returns per unit of risk. Jpmorgan Emerging Markets is currently generating about 0.15 per unit of risk. If you would invest 846.00 in Sit Emerging Markets on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Sit Emerging Markets or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Emerging Markets vs. Jpmorgan Emerging Markets
Performance |
| Timeline |
| Sit Emerging Markets |
| Jpmorgan Emerging Markets |
Sit Emerging and Jpmorgan Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Emerging and Jpmorgan Emerging
The main advantage of trading using opposite Sit Emerging and Jpmorgan Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Emerging position performs unexpectedly, Jpmorgan 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 Jpmorgan Emerging will offset losses from the drop in Jpmorgan Emerging's long position.| Sit Emerging vs. Touchstone Large Cap | Sit Emerging vs. Growth Portfolio Class | Sit Emerging vs. Tfa Alphagen Growth | Sit Emerging vs. Barings Global Floating |
| Jpmorgan Emerging vs. Invesco Global Health | Jpmorgan Emerging vs. Blackrock Health Sciences | Jpmorgan Emerging vs. The Hartford Healthcare | Jpmorgan Emerging vs. Blackrock Health Sciences |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |