Correlation Between Global X and JPMorgan Fundamental

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

By analyzing existing cross correlation between Global X Funds and JPMorgan Fundamental Data, you can compare the effects of market volatilities on Global X and JPMorgan Fundamental 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 JPMorgan Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and JPMorgan Fundamental.

Diversification Opportunities for Global X and JPMorgan Fundamental

0.83

Correlation Coefficient

Global X  JPMorgan Fundamental

Very poor diversification

The 3 months correlation between Global and JPMorgan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data 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 Funds are associated (or correlated) with JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of Global X i.e., Global X and JPMorgan Fundamental go up and down completely randomly.

Pair Corralation between Global X and JPMorgan Fundamental

Given the investment horizon of 90 days Global X Funds is expected to under-perform the JPMorgan Fundamental. But the etf apears to be less risky and, when comparing its historical volatility, Global X Funds is 1.02 times less risky than JPMorgan Fundamental. The etf trades about -0.29 of its potential returns per unit of risk. The JPMorgan Fundamental Data is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest  5,842  in JPMorgan Fundamental Data on October 9, 2024 and sell it today you would lose (221.00) from holding JPMorgan Fundamental Data or give up 3.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.0%
Values	Daily Returns

Global X Funds  vs.  JPMorgan Fundamental Data

Global X Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X Funds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Global X is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

JPMorgan Fundamental Data

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Fundamental Data are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, JPMorgan Fundamental 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 Global X and JPMorgan Fundamental

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

The idea behind Global X Funds and JPMorgan Fundamental Data 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.