Correlation Between SPDR Portfolio and JP Morgan
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio 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 SPDR Portfolio and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio Intermediate and JP Morgan Exchange Traded, you can compare the effects of market volatilities on SPDR Portfolio 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 SPDR Portfolio with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and JP Morgan.
Diversification Opportunities for SPDR Portfolio and JP Morgan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and BBSB is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Intermediate 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 SPDR Portfolio 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 SPDR Portfolio Intermediate 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 SPDR Portfolio i.e., SPDR Portfolio and JP Morgan go up and down completely randomly.
Pair Corralation between SPDR Portfolio and JP Morgan
Given the investment horizon of 90 days SPDR Portfolio is expected to generate 1.06 times less return on investment than JP Morgan. In addition to that, SPDR Portfolio is 2.79 times more volatile than JP Morgan Exchange Traded. It trades about 0.06 of its total potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about 0.18 per unit of volatility. If you would invest 9,508 in JP Morgan Exchange Traded on September 1, 2024 and sell it today you would earn a total of 341.00 from holding JP Morgan Exchange Traded or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
SPDR Portfolio Intermediate vs. JP Morgan Exchange Traded
Performance |
| Timeline |
| SPDR Portfolio Inter |
| JP Morgan Exchange |
SPDR Portfolio and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and JP Morgan
The main advantage of trading using opposite SPDR Portfolio and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio 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.| SPDR Portfolio vs. Janus Henderson Short | SPDR Portfolio vs. iShares CMBS ETF | SPDR Portfolio vs. Janus Detroit Street | SPDR Portfolio vs. Alpha Architect Gdsdn |
| JP Morgan vs. SPDR Barclays Long | JP Morgan vs. SPDR Portfolio Intermediate | JP Morgan vs. SPDR Barclays Short | JP Morgan vs. SPDR Barclays Intermediate |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |