Correlation Between Global X and JPM Global
Can any of the company-specific risk be diversified away by investing in both Global X and JPM Global 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 Global X and JPM Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Uranium and JPM Global Research, you can compare the effects of market volatilities on Global X and JPM Global 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 Global X with a short position of JPM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and JPM Global.
Diversification Opportunities for Global X and JPM Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and JPM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global X Uranium and JPM Global Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM Global Research and Global X 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 Global X Uranium are associated (or correlated) with JPM Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM Global Research has no effect on the direction of Global X i.e., Global X and JPM Global go up and down completely randomly.
Pair Corralation between Global X and JPM Global
Assuming the 90 days trading horizon Global X is expected to generate 2.01 times less return on investment than JPM Global. In addition to that, Global X is 3.63 times more volatile than JPM Global Research. It trades about 0.02 of its total potential returns per unit of risk. JPM Global Research is currently generating about 0.13 per unit of volatility. If you would invest 193,950 in JPM Global Research on November 28, 2024 and sell it today you would earn a total of 57,450 from holding JPM Global Research or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Uranium vs. JPM Global Research
Performance |
| Timeline |
| Global X Uranium |
| JPM Global Research |
Global X and JPM Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and JPM Global
The main advantage of trading using opposite Global X and JPM Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, JPM Global 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 JPM Global will offset losses from the drop in JPM Global's long position.| Global X vs. Global X Data | Global X vs. Global X Copper | Global X vs. Global X ETFs | Global X vs. Global X Infrastructure |
| JPM Global vs. JPM BetaBuilders China | JPM Global vs. JPM AC Asia | JPM Global vs. JPM BetaBuilders Treasury | JPM Global vs. JPM Research Enhanced |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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