Correlation Between Nordea 1 and JPM America
Can any of the company-specific risk be diversified away by investing in both Nordea 1 and JPM America 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 Nordea 1 and JPM America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordea 1 SICAV and JPM America Equity, you can compare the effects of market volatilities on Nordea 1 and JPM America 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 Nordea 1 with a short position of JPM America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea 1 and JPM America.
Diversification Opportunities for Nordea 1 and JPM America
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordea and JPM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordea 1 SICAV and JPM America Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM America Equity and Nordea 1 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 Nordea 1 SICAV are associated (or correlated) with JPM America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM America Equity has no effect on the direction of Nordea 1 i.e., Nordea 1 and JPM America go up and down completely randomly.
Pair Corralation between Nordea 1 and JPM America
If you would invest 44,391 in JPM America Equity on November 5, 2024 and sell it today you would earn a total of 316.00 from holding JPM America Equity or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nordea 1 SICAV vs. JPM America Equity
Performance |
| Timeline |
| Nordea 1 SICAV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JPM America Equity |
Nordea 1 and JPM America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea 1 and JPM America
The main advantage of trading using opposite Nordea 1 and JPM America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea 1 position performs unexpectedly, JPM America 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 America will offset losses from the drop in JPM America's long position.| Nordea 1 vs. Esfera Robotics R | Nordea 1 vs. R co Valor F | Nordea 1 vs. CM AM Monplus NE | Nordea 1 vs. IE00B0H4TS55 |
| JPM America vs. Pareto Nordic Equity | JPM America vs. Esfera Robotics R | JPM America vs. R co Valor F | JPM America vs. CM AM Monplus NE |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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