Correlation Between JPM America and CM AM
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By analyzing existing cross correlation between JPM America Equity and CM AM Monplus NE, you can compare the effects of market volatilities on JPM America and CM AM 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 CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM America and CM AM.
Diversification Opportunities for JPM America and CM AM
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPM and 0P0001F96C is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding JPM America Equity and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus 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 CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of JPM America i.e., JPM America and CM AM go up and down completely randomly.
Pair Corralation between JPM America and CM AM
Assuming the 90 days trading horizon JPM America Equity is expected to generate 104.09 times more return on investment than CM AM. However, JPM America is 104.09 times more volatile than CM AM Monplus NE. It trades about 0.11 of its potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.43 per unit of risk. If you would invest 36,013 in JPM America Equity on September 8, 2024 and sell it today you would earn a total of 8,731 from holding JPM America Equity or generate 24.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 40.99% |
Values | Daily Returns |
JPM America Equity vs. CM AM Monplus NE
Performance |
Timeline |
JPM America Equity |
CM AM Monplus |
JPM America and CM AM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPM America and CM AM
The main advantage of trading using opposite JPM America and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM America position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.JPM America vs. iShares Equity Enhanced | JPM America vs. Pareto Nordic Equity | JPM America vs. Esfera Robotics R | JPM America vs. R co Valor F |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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