Correlation Between WisdomTree Silver and JPMorgan ETFs

Can any of the company-specific risk be diversified away by investing in both WisdomTree Silver and JPMorgan ETFs 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 Silver and JPMorgan ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WisdomTree Silver 3x and JPMorgan ETFs ICAV, you can compare the effects of market volatilities on WisdomTree Silver and JPMorgan ETFs 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 Silver with a short position of JPMorgan ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Silver and JPMorgan ETFs.

Diversification Opportunities for WisdomTree Silver and JPMorgan ETFs

-0.45

Correlation Coefficient

WisdomTree Silver  JPMorgan ETFs

Very good diversification

The 3 months correlation between WisdomTree and JPMorgan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Silver 3x and JPMorgan ETFs ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs ICAV and WisdomTree Silver 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 Silver 3x are associated (or correlated) with JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs ICAV has no effect on the direction of WisdomTree Silver i.e., WisdomTree Silver and JPMorgan ETFs go up and down completely randomly.

Pair Corralation between WisdomTree Silver and JPMorgan ETFs

Assuming the 90 days trading horizon WisdomTree Silver 3x is expected to under-perform the JPMorgan ETFs. In addition to that, WisdomTree Silver is 6.22 times more volatile than JPMorgan ETFs ICAV. It trades about -0.14 of its total potential returns per unit of risk. JPMorgan ETFs ICAV is currently generating about -0.14 per unit of volatility. If you would invest  6,051  in JPMorgan ETFs ICAV on October 11, 2024 and sell it today you would lose (152.00) from holding JPMorgan ETFs ICAV or give up 2.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

WisdomTree Silver 3x  vs.  JPMorgan ETFs ICAV

WisdomTree Silver

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WisdomTree Silver 3x has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

JPMorgan ETFs ICAV

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan ETFs ICAV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, JPMorgan ETFs is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with WisdomTree Silver and JPMorgan ETFs

The main advantage of trading using opposite WisdomTree Silver and JPMorgan ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Silver position performs unexpectedly, JPMorgan ETFs 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 ETFs will offset losses from the drop in JPMorgan ETFs' long position.

The idea behind WisdomTree Silver 3x and JPMorgan ETFs ICAV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.