Correlation Between Armada Hflr and JPMorgan ETFs

Can any of the company-specific risk be diversified away by investing in both Armada Hflr and JPMorgan ETFs 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 Armada Hflr and JPMorgan ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Armada Hflr Pr and JPMorgan ETFs ICAV, you can compare the effects of market volatilities on Armada Hflr and JPMorgan ETFs 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 Armada Hflr with a short position of JPMorgan ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and JPMorgan ETFs.

Diversification Opportunities for Armada Hflr and JPMorgan ETFs

-0.31

Correlation Coefficient

Armada Hflr  JPMorgan ETFs

Very good diversification

The 3 months correlation between Armada and JPMorgan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and JPMorgan ETFs ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs ICAV and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs ICAV has no effect on the direction of Armada Hflr i.e., Armada Hflr and JPMorgan ETFs go up and down completely randomly.

Pair Corralation between Armada Hflr and JPMorgan ETFs

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the JPMorgan ETFs. In addition to that, Armada Hflr is 8.54 times more volatile than JPMorgan ETFs ICAV. It trades about -0.02 of its total potential returns per unit of risk. JPMorgan ETFs ICAV is currently generating about 0.19 per unit of volatility. If you would invest  10,060  in JPMorgan ETFs ICAV on September 29, 2024 and sell it today you would earn a total of  415.00  from holding JPMorgan ETFs ICAV or generate 4.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Armada Hflr Pr  vs.  JPMorgan ETFs ICAV

Armada Hflr Pr

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Armada Hflr Pr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Armada Hflr is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

JPMorgan ETFs ICAV

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan ETFs ICAV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, JPMorgan ETFs is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Armada Hflr and JPMorgan ETFs

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

The idea behind Armada Hflr Pr and JPMorgan ETFs ICAV 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.