Correlation Between JPMorgan Fundamental and AIM ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and AIM ETF 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 Fundamental and AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Fundamental Data and AIM ETF Products, you can compare the effects of market volatilities on JPMorgan Fundamental and AIM ETF 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 Fundamental with a short position of AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and AIM ETF.
Diversification Opportunities for JPMorgan Fundamental and AIM ETF
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and AIM is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products and JPMorgan Fundamental 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 Fundamental Data are associated (or correlated) with AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and AIM ETF go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and AIM ETF
Given the investment horizon of 90 days JPMorgan Fundamental Data is expected to generate 1.56 times more return on investment than AIM ETF. However, JPMorgan Fundamental is 1.56 times more volatile than AIM ETF Products. It trades about 0.26 of its potential returns per unit of risk. AIM ETF Products is currently generating about 0.13 per unit of risk. If you would invest 4,992 in JPMorgan Fundamental Data on September 12, 2024 and sell it today you would earn a total of 870.00 from holding JPMorgan Fundamental Data or generate 17.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 49.44% |
Values | Daily Returns |
JPMorgan Fundamental Data vs. AIM ETF Products
Performance |
Timeline |
JPMorgan Fundamental Data |
AIM ETF Products |
JPMorgan Fundamental and AIM ETF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Fundamental and AIM ETF
The main advantage of trading using opposite JPMorgan Fundamental and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, AIM ETF 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 AIM ETF will offset losses from the drop in AIM ETF's long position.JPMorgan Fundamental vs. FT Vest Equity | JPMorgan Fundamental vs. Northern Lights | JPMorgan Fundamental vs. Dimensional International High | JPMorgan Fundamental vs. Matthews China Discovery |
AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. JPMorgan Fundamental Data |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Fundamental Analysis View fundamental data based on most recent published financial statements |