Correlation Between JPMorgan ETFs and Jungfraubahn Holding

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

Diversification Opportunities for JPMorgan ETFs and Jungfraubahn Holding

0.74

Correlation Coefficient

JPMorgan ETFs  Jungfraubahn Holding

Poor diversification

The 3 months correlation between JPMorgan and Jungfraubahn is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan ETFs ICAV and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding 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 Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of JPMorgan ETFs i.e., JPMorgan ETFs and Jungfraubahn Holding go up and down completely randomly.

Pair Corralation between JPMorgan ETFs and Jungfraubahn Holding

Assuming the 90 days trading horizon JPMorgan ETFs is expected to generate 1.13 times less return on investment than Jungfraubahn Holding. But when comparing it to its historical volatility, JPMorgan ETFs ICAV is 1.9 times less risky than Jungfraubahn Holding. It trades about 0.2 of its potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  17,400  in Jungfraubahn Holding AG on December 30, 2024 and sell it today you would earn a total of  1,680  from holding Jungfraubahn Holding AG or generate 9.66% 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.  Jungfraubahn Holding AG

JPMorgan ETFs ICAV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan ETFs ICAV are ranked lower than 15 (%) 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.

Jungfraubahn Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jungfraubahn Holding AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jungfraubahn Holding may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with JPMorgan ETFs and Jungfraubahn Holding

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

The idea behind JPMorgan ETFs ICAV and Jungfraubahn Holding 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.

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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.