Correlation Between AMPL and Jpmorgan Equity
Can any of the company-specific risk be diversified away by investing in both AMPL and Jpmorgan Equity 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 AMPL and Jpmorgan Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPL and Jpmorgan Equity Index, you can compare the effects of market volatilities on AMPL and Jpmorgan Equity 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 AMPL with a short position of Jpmorgan Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPL and Jpmorgan Equity.
Diversification Opportunities for AMPL and Jpmorgan Equity
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMPL and Jpmorgan is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding AMPL and Jpmorgan Equity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity Index and AMPL 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 AMPL are associated (or correlated) with Jpmorgan Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity Index has no effect on the direction of AMPL i.e., AMPL and Jpmorgan Equity go up and down completely randomly.
Pair Corralation between AMPL and Jpmorgan Equity
Assuming the 90 days trading horizon AMPL is expected to generate 1.99 times less return on investment than Jpmorgan Equity. In addition to that, AMPL is 7.54 times more volatile than Jpmorgan Equity Index. It trades about 0.02 of its total potential returns per unit of risk. Jpmorgan Equity Index is currently generating about 0.32 per unit of volatility. If you would invest 7,889 in Jpmorgan Equity Index on April 16, 2025 and sell it today you would earn a total of 1,505 from holding Jpmorgan Equity Index or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
AMPL vs. Jpmorgan Equity Index
Performance |
| Timeline |
| AMPL |
| Jpmorgan Equity Index |
AMPL and Jpmorgan Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPL and Jpmorgan Equity
The main advantage of trading using opposite AMPL and Jpmorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPL position performs unexpectedly, Jpmorgan Equity 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 Equity will offset losses from the drop in Jpmorgan Equity's long position.The idea behind AMPL and Jpmorgan Equity Index 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.| Jpmorgan Equity vs. World Energy Fund | Jpmorgan Equity vs. Blackrock All Cap Energy | Jpmorgan Equity vs. Vanguard Energy Index | Jpmorgan Equity vs. Adams Natural Resources |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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