Correlation Between Xtrackers and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Xtrackers and JPMorgan Chase 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 Xtrackers and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers II and JPMorgan Chase Co, you can compare the effects of market volatilities on Xtrackers and JPMorgan Chase 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 Xtrackers with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and JPMorgan Chase.
Diversification Opportunities for Xtrackers and JPMorgan Chase
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and JPMorgan is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Xtrackers 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 Xtrackers II are associated (or correlated) with JPMorgan Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Chase has no effect on the direction of Xtrackers i.e., Xtrackers and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Xtrackers and JPMorgan Chase
Assuming the 90 days trading horizon Xtrackers II is expected to generate 0.13 times more return on investment than JPMorgan Chase. However, Xtrackers II is 7.63 times less risky than JPMorgan Chase. It trades about -0.03 of its potential returns per unit of risk. JPMorgan Chase Co is currently generating about -0.14 per unit of risk. If you would invest 1,569 in Xtrackers II on January 20, 2024 and sell it today you would lose (2.00) from holding Xtrackers II or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers II vs. JPMorgan Chase Co
Performance |
| Timeline |
| Xtrackers II |
| JPMorgan Chase |
Xtrackers and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and JPMorgan Chase
The main advantage of trading using opposite Xtrackers and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, JPMorgan Chase 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 Chase will offset losses from the drop in JPMorgan Chase's long position.| Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers Stoxx |
| JPMorgan Chase vs. WESTFIELD RETAIL TR | JPMorgan Chase vs. Renesas Electronics | JPMorgan Chase vs. Arrow Electronics | JPMorgan Chase vs. Universal Electronics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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