Correlation Between AIM ETF and JPMorgan Ultra
Can any of the company-specific risk be diversified away by investing in both AIM ETF and JPMorgan Ultra 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 Ultra 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 Ultra Short Municipal, you can compare the effects of market volatilities on AIM ETF and JPMorgan Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and JPMorgan Ultra.
Diversification Opportunities for AIM ETF and JPMorgan Ultra
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIM and JPMorgan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and JPMorgan Ultra Short Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Ultra Short 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Ultra Short has no effect on the direction of AIM ETF i.e., AIM ETF and JPMorgan Ultra go up and down completely randomly.
Pair Corralation between AIM ETF and JPMorgan Ultra
Given the investment horizon of 90 days AIM ETF Products is expected to generate 3.69 times more return on investment than JPMorgan Ultra. However, AIM ETF is 3.69 times more volatile than JPMorgan Ultra Short Municipal. It trades about 0.23 of its potential returns per unit of risk. JPMorgan Ultra Short Municipal is currently generating about 0.3 per unit of risk. If you would invest 2,650 in AIM ETF Products on August 30, 2024 and sell it today you would earn a total of 30.00 from holding AIM ETF Products or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. JPMorgan Ultra Short Municipal
Performance |
| Timeline |
| AIM ETF Products |
| JPMorgan Ultra Short |
AIM ETF and JPMorgan Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and JPMorgan Ultra
The main advantage of trading using opposite AIM ETF and JPMorgan Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF position performs unexpectedly, JPMorgan Ultra 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 Ultra will offset losses from the drop in JPMorgan Ultra's long position.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. First Trust Exchange Traded |
| JPMorgan Ultra vs. JPMorgan Municipal | JPMorgan Ultra vs. iShares Short Maturity | JPMorgan Ultra vs. JPMorgan Ultra Short Income | JPMorgan Ultra vs. iShares Ultra Short Term |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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