Correlation Between JPMorgan ETFs and Hubersuhner

Can any of the company-specific risk be diversified away by investing in both JPMorgan ETFs and Hubersuhner 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 Hubersuhner 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 Hubersuhner AG, you can compare the effects of market volatilities on JPMorgan ETFs and Hubersuhner 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 Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan ETFs and Hubersuhner.

Diversification Opportunities for JPMorgan ETFs and Hubersuhner

0.71

Correlation Coefficient

JPMorgan ETFs  Hubersuhner

Poor diversification

The 3 months correlation between JPMorgan and Hubersuhner is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner AG 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 Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Hubersuhner go up and down completely randomly.

Pair Corralation between JPMorgan ETFs and Hubersuhner

Assuming the 90 days trading horizon JPMorgan ETFs ICAV is expected to generate 0.66 times more return on investment than Hubersuhner. However, JPMorgan ETFs ICAV is 1.51 times less risky than Hubersuhner. It trades about 0.24 of its potential returns per unit of risk. Hubersuhner AG is currently generating about 0.09 per unit of risk. If you would invest  4,275  in JPMorgan ETFs ICAV on December 3, 2024 and sell it today you would earn a total of  382.00  from holding JPMorgan ETFs ICAV or generate 8.94% return on investment over 90 days.

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

JPMorgan ETFs ICAV  vs.  Hubersuhner AG

JPMorgan ETFs ICAV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan ETFs ICAV are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, JPMorgan ETFs may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Hubersuhner AG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hubersuhner AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Hubersuhner is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with JPMorgan ETFs and Hubersuhner

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

The idea behind JPMorgan ETFs ICAV and Hubersuhner AG 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.