Correlation Between JPMorgan and Innovator Capital
Can any of the company-specific risk be diversified away by investing in both JPMorgan and Innovator Capital 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 and Innovator Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan and Innovator Capital Management, you can compare the effects of market volatilities on JPMorgan and Innovator Capital 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 with a short position of Innovator Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan and Innovator Capital.
Diversification Opportunities for JPMorgan and Innovator Capital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Innovator is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan and Innovator Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Capital and JPMorgan 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 are associated (or correlated) with Innovator Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Capital has no effect on the direction of JPMorgan i.e., JPMorgan and Innovator Capital go up and down completely randomly.
Pair Corralation between JPMorgan and Innovator Capital
Given the investment horizon of 90 days JPMorgan is expected to generate 0.69 times more return on investment than Innovator Capital. However, JPMorgan is 1.46 times less risky than Innovator Capital. It trades about 0.1 of its potential returns per unit of risk. Innovator Capital Management is currently generating about 0.06 per unit of risk. If you would invest 5,032 in JPMorgan on August 30, 2024 and sell it today you would earn a total of 596.00 from holding JPMorgan or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 33.7% |
| Values | Daily Returns |
JPMorgan vs. Innovator Capital Management
Performance |
| Timeline |
| JPMorgan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innovator Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
JPMorgan and Innovator Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan and Innovator Capital
The main advantage of trading using opposite JPMorgan and Innovator Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan position performs unexpectedly, Innovator Capital 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 Innovator Capital will offset losses from the drop in Innovator Capital's long position.| JPMorgan vs. Vanguard Total Stock | JPMorgan vs. SPDR SP 500 | JPMorgan vs. iShares Core SP | JPMorgan vs. Vanguard Total Bond |
| Innovator Capital vs. AXS TSLA Bear | Innovator Capital vs. Direxion Shares ETF | Innovator Capital vs. Direxion Shares ETF | Innovator Capital vs. Direxion Shares ETF |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |