Correlation Between WisdomTree Managed and JPMorgan Short
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed and JPMorgan Short 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 WisdomTree Managed and JPMorgan Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Managed Futures and JPMorgan Short Duration, you can compare the effects of market volatilities on WisdomTree Managed and JPMorgan Short 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 WisdomTree Managed with a short position of JPMorgan Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and JPMorgan Short.
Diversification Opportunities for WisdomTree Managed and JPMorgan Short
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and JPMorgan is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and JPMorgan Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Short Duration and WisdomTree Managed 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 WisdomTree Managed Futures are associated (or correlated) with JPMorgan Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Short Duration has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and JPMorgan Short go up and down completely randomly.
Pair Corralation between WisdomTree Managed and JPMorgan Short
Given the investment horizon of 90 days WisdomTree Managed Futures is expected to generate 8.02 times more return on investment than JPMorgan Short. However, WisdomTree Managed is 8.02 times more volatile than JPMorgan Short Duration. It trades about 0.07 of its potential returns per unit of risk. JPMorgan Short Duration is currently generating about -0.12 per unit of risk. If you would invest 3,470 in WisdomTree Managed Futures on August 29, 2024 and sell it today you would earn a total of 96.00 from holding WisdomTree Managed Futures or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. JPMorgan Short Duration
Performance |
| Timeline |
| WisdomTree Managed |
| JPMorgan Short Duration |
WisdomTree Managed and JPMorgan Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and JPMorgan Short
The main advantage of trading using opposite WisdomTree Managed and JPMorgan Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed position performs unexpectedly, JPMorgan Short 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 Short will offset losses from the drop in JPMorgan Short's long position.| WisdomTree Managed vs. First Trust Managed | WisdomTree Managed vs. iMGP DBi Managed | WisdomTree Managed vs. First Trust LongShort | WisdomTree Managed vs. WisdomTree CBOE SP |
| JPMorgan Short vs. iShares 5 10 Year | JPMorgan Short vs. iShares 0 5 Year | JPMorgan Short vs. SPDR Barclays Short | JPMorgan Short vs. iShares Core Total |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |