Correlation Between JPMorgan ETFs and JPMorgan

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

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

Diversification Opportunities for JPMorgan ETFs and JPMorgan

0.0

Correlation Coefficient

JPMorgan ETFs  JPMorgan

Pay attention - limited upside

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

Pair Corralation between JPMorgan ETFs and JPMorgan

If you would invest  10,066  in JPMorgan ETFs ICAV on October 9, 2024 and sell it today you would earn a total of  66.00  from holding JPMorgan ETFs ICAV or generate 0.66% return on investment over 90 days.

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

JPMorgan ETFs ICAV  vs.  JPMorgan

JPMorgan ETFs ICAV

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan ETFs ICAV are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical indicators, JPMorgan ETFs is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

JPMorgan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JPMorgan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, JPMorgan is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with JPMorgan ETFs and JPMorgan

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

The idea behind JPMorgan ETFs ICAV and JPMorgan 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..