Correlation Between JPMorgan Active and UBS

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

By analyzing existing cross correlation between JPMorgan Active Value and UBS, you can compare the effects of market volatilities on JPMorgan Active and UBS 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 JPMorgan Active with a short position of UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Active and UBS.

Diversification Opportunities for JPMorgan Active and UBS

0.0

Correlation Coefficient

JPMorgan Active  UBS

Pay attention - limited upside

The 3 months correlation between JPMorgan and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Active Value and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS and JPMorgan Active 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 JPMorgan Active Value are associated (or correlated) with UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of JPMorgan Active i.e., JPMorgan Active and UBS go up and down completely randomly.

Pair Corralation between JPMorgan Active and UBS

If you would invest  5,897  in JPMorgan Active Value on September 19, 2024 and sell it today you would earn a total of  622.00  from holding JPMorgan Active Value or generate 10.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JPMorgan Active Value  vs.  UBS

JPMorgan Active Value

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Active Value are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, JPMorgan Active is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

UBS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UBS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, UBS is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with JPMorgan Active and UBS

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

The idea behind JPMorgan Active Value and UBS 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.