Correlation Between JPM America and ALM Offensif
Specify exactly 2 symbols:
By analyzing existing cross correlation between JPM America Equity and ALM Offensif, you can compare the effects of market volatilities on JPM America and ALM Offensif 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 JPM America with a short position of ALM Offensif. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM America and ALM Offensif.
Diversification Opportunities for JPM America and ALM Offensif
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPM and ALM is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding JPM America Equity and ALM Offensif in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Offensif and JPM America 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 JPM America Equity are associated (or correlated) with ALM Offensif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Offensif has no effect on the direction of JPM America i.e., JPM America and ALM Offensif go up and down completely randomly.
Pair Corralation between JPM America and ALM Offensif
Assuming the 90 days trading horizon JPM America Equity is expected to generate 2.03 times more return on investment than ALM Offensif. However, JPM America is 2.03 times more volatile than ALM Offensif. It trades about 0.11 of its potential returns per unit of risk. ALM Offensif is currently generating about 0.1 per unit of risk. If you would invest 36,013 in JPM America Equity on September 6, 2024 and sell it today you would earn a total of 8,367 from holding JPM America Equity or generate 23.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 40.56% |
Values | Daily Returns |
JPM America Equity vs. ALM Offensif
Performance |
Timeline |
JPM America Equity |
ALM Offensif |
JPM America and ALM Offensif Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPM America and ALM Offensif
The main advantage of trading using opposite JPM America and ALM Offensif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM America position performs unexpectedly, ALM Offensif 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 ALM Offensif will offset losses from the drop in ALM Offensif's long position.JPM America vs. Groupama Entreprises N | JPM America vs. Renaissance Europe C | JPM America vs. Superior Plus Corp | JPM America vs. Origin Agritech |
ALM Offensif vs. ALM Classic RA | ALM Offensif vs. Esfera Robotics R | ALM Offensif vs. R co Valor F | ALM Offensif 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |