Correlation Between CM AM and JPM America
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By analyzing existing cross correlation between CM AM Monplus NE and JPM America Equity, you can compare the effects of market volatilities on CM AM and JPM America 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 CM AM with a short position of JPM America. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and JPM America.
Diversification Opportunities for CM AM and JPM America
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0P0001F96C and JPM is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and JPM America Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM America Equity and CM AM 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 CM AM Monplus NE are associated (or correlated) with JPM America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM America Equity has no effect on the direction of CM AM i.e., CM AM and JPM America go up and down completely randomly.
Pair Corralation between CM AM and JPM America
Assuming the 90 days trading horizon CM AM is expected to generate 19.94 times less return on investment than JPM America. But when comparing it to its historical volatility, CM AM Monplus NE is 127.44 times less risky than JPM America. It trades about 1.47 of its potential returns per unit of risk. JPM America Equity is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 37,990 in JPM America Equity on September 6, 2024 and sell it today you would earn a total of 6,390 from holding JPM America Equity or generate 16.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.88% |
Values | Daily Returns |
CM AM Monplus NE vs. JPM America Equity
Performance |
Timeline |
CM AM Monplus |
JPM America Equity |
CM AM and JPM America Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CM AM and JPM America
The main advantage of trading using opposite CM AM and JPM America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, JPM America 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 JPM America will offset losses from the drop in JPM America's long position.CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. DWS Aktien Strategie |
JPM America vs. Pareto Nordic Equity | JPM America vs. Esfera Robotics R | JPM America vs. R co Valor F | JPM America vs. CM AM Monplus NE |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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