Correlation Between AIM ETF and JPMorgan BetaBuilders
Can any of the company-specific risk be diversified away by investing in both AIM ETF and JPMorgan BetaBuilders 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 AIM ETF and JPMorgan BetaBuilders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ETF Products and JPMorgan BetaBuilders Japan, you can compare the effects of market volatilities on AIM ETF and JPMorgan BetaBuilders 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 AIM ETF with a short position of JPMorgan BetaBuilders. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and JPMorgan BetaBuilders.
Diversification Opportunities for AIM ETF and JPMorgan BetaBuilders
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and JPMorgan is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and JPMorgan BetaBuilders Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan BetaBuilders and AIM ETF 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 AIM ETF Products are associated (or correlated) with JPMorgan BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan BetaBuilders has no effect on the direction of AIM ETF i.e., AIM ETF and JPMorgan BetaBuilders go up and down completely randomly.
Pair Corralation between AIM ETF and JPMorgan BetaBuilders
Given the investment horizon of 90 days AIM ETF Products is expected to generate 0.3 times more return on investment than JPMorgan BetaBuilders. However, AIM ETF Products is 3.38 times less risky than JPMorgan BetaBuilders. It trades about 0.15 of its potential returns per unit of risk. JPMorgan BetaBuilders Japan is currently generating about 0.01 per unit of risk. If you would invest 2,504 in AIM ETF Products on September 2, 2024 and sell it today you would earn a total of 181.00 from holding AIM ETF Products or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. JPMorgan BetaBuilders Japan
Performance |
| Timeline |
| AIM ETF Products |
| JPMorgan BetaBuilders |
AIM ETF and JPMorgan BetaBuilders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and JPMorgan BetaBuilders
The main advantage of trading using opposite AIM ETF and JPMorgan BetaBuilders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, JPMorgan BetaBuilders 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 BetaBuilders will offset losses from the drop in JPMorgan BetaBuilders' long position.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. Matthews China Discovery |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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