Correlation Between Martin Currie and JP Morgan

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

By analyzing existing cross correlation between Martin Currie Sustainable and JP Morgan Exchange Traded, you can compare the effects of market volatilities on Martin Currie and JP Morgan 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 Martin Currie with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and JP Morgan.

Diversification Opportunities for Martin Currie and JP Morgan

0.84

Correlation Coefficient

Martin Currie  JP Morgan

Very poor diversification

The 3 months correlation between Martin and BLLD is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Exchange has no effect on the direction of Martin Currie i.e., Martin Currie and JP Morgan go up and down completely randomly.

Pair Corralation between Martin Currie and JP Morgan

Given the investment horizon of 90 days Martin Currie Sustainable is expected to generate 1.27 times more return on investment than JP Morgan. However, Martin Currie is 1.27 times more volatile than JP Morgan Exchange Traded. It trades about -0.18 of its potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about -0.34 per unit of risk. If you would invest  1,391  in Martin Currie Sustainable on October 9, 2024 and sell it today you would lose (51.00) from holding Martin Currie Sustainable or give up 3.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.0%
Values	Daily Returns

Martin Currie Sustainable  vs.  JP Morgan Exchange Traded

Martin Currie Sustainable

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Martin Currie Sustainable has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

JP Morgan Exchange

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JP Morgan Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with Martin Currie and JP Morgan

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

The idea behind Martin Currie Sustainable and JP Morgan Exchange Traded 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.