Correlation Between JPM America and BEKA LUX
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By analyzing existing cross correlation between JPM America Equity and BEKA LUX SICAV, you can compare the effects of market volatilities on JPM America and BEKA LUX 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 BEKA LUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM America and BEKA LUX.
Diversification Opportunities for JPM America and BEKA LUX
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPM and BEKA is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding JPM America Equity and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV 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 BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of JPM America i.e., JPM America and BEKA LUX go up and down completely randomly.
Pair Corralation between JPM America and BEKA LUX
Assuming the 90 days trading horizon JPM America Equity is expected to generate 3.58 times more return on investment than BEKA LUX. However, JPM America is 3.58 times more volatile than BEKA LUX SICAV. It trades about 0.27 of its potential returns per unit of risk. BEKA LUX SICAV is currently generating about 0.09 per unit of risk. If you would invest 43,129 in JPM America Equity on September 10, 2024 and sell it today you would earn a total of 1,615 from holding JPM America Equity or generate 3.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
JPM America Equity vs. BEKA LUX SICAV
Performance |
Timeline |
JPM America Equity |
BEKA LUX SICAV |
JPM America and BEKA LUX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPM America and BEKA LUX
The main advantage of trading using opposite JPM America and BEKA LUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM America position performs unexpectedly, BEKA LUX 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 BEKA LUX will offset losses from the drop in BEKA LUX's long position.JPM America vs. JPM Global Natural | JPM America vs. JPM Europe Small | JPM America vs. JPM Emerging Markets | JPM America vs. Esfera Robotics R |
BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. SIVERS SEMICONDUCTORS AB | BEKA LUX vs. Darden Restaurants | BEKA LUX vs. Q2M Managementberatung AG |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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