Correlation Between Leverage Shares and JPM China
Can any of the company-specific risk be diversified away by investing in both Leverage Shares and JPM China 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 Leverage Shares and JPM China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leverage Shares 5x and JPM China A, you can compare the effects of market volatilities on Leverage Shares and JPM China 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 Leverage Shares with a short position of JPM China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leverage Shares and JPM China.
Diversification Opportunities for Leverage Shares and JPM China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leverage and JPM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leverage Shares 5x and JPM China A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM China A and Leverage Shares 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 Leverage Shares 5x are associated (or correlated) with JPM China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM China A has no effect on the direction of Leverage Shares i.e., Leverage Shares and JPM China go up and down completely randomly.
Pair Corralation between Leverage Shares and JPM China
If you would invest 1,800 in JPM China A on October 23, 2024 and sell it today you would lose (5.00) from holding JPM China A or give up 0.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Leverage Shares 5x vs. JPM China A
Performance |
Timeline |
Leverage Shares 5x |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPM China A |
Leverage Shares and JPM China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Leverage Shares and JPM China
The main advantage of trading using opposite Leverage Shares and JPM China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leverage Shares position performs unexpectedly, JPM China 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 China will offset losses from the drop in JPM China's long position.Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x |
JPM China vs. JPM BetaBuilders China | JPM China vs. JPM AC Asia | JPM China vs. JPM BetaBuilders Treasury | JPM China 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 CEOs Directory module to screen CEOs from public companies around the world.
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