Correlation Between JPMorgan Equity and Amplify CWP

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

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

Diversification Opportunities for JPMorgan Equity and Amplify CWP

0.93

Correlation Coefficient

JPMorgan Equity  Amplify CWP

Almost no diversification

The 3 months correlation between JPMorgan and Amplify is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Equity Premium and Amplify CWP Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify CWP Enhanced and JPMorgan Equity 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 Equity Premium are associated (or correlated) with Amplify CWP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify CWP Enhanced has no effect on the direction of JPMorgan Equity i.e., JPMorgan Equity and Amplify CWP go up and down completely randomly.

Pair Corralation between JPMorgan Equity and Amplify CWP

Given the investment horizon of 90 days JPMorgan Equity Premium is expected to under-perform the Amplify CWP. But the etf apears to be less risky and, when comparing its historical volatility, JPMorgan Equity Premium is 1.1 times less risky than Amplify CWP. The etf trades about -0.01 of its potential returns per unit of risk. The Amplify CWP Enhanced is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  4,013  in Amplify CWP Enhanced on December 30, 2024 and sell it today you would earn a total of  22.00  from holding Amplify CWP Enhanced or generate 0.55% return on investment over 90 days.

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

JPMorgan Equity Premium  vs.  Amplify CWP Enhanced

JPMorgan Equity Premium

Risk-Adjusted Performance

Very Weak

Over the last 90 days JPMorgan Equity Premium has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, JPMorgan Equity is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Amplify CWP Enhanced

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify CWP Enhanced are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Amplify CWP is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with JPMorgan Equity and Amplify CWP

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

The idea behind JPMorgan Equity Premium and Amplify CWP Enhanced 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.