Correlation Between JPMorgan BetaBuilders and Pacer Small
Can any of the company-specific risk be diversified away by investing in both JPMorgan BetaBuilders and Pacer Small 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 JPMorgan BetaBuilders and Pacer Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan BetaBuilders Europe and Pacer Small Cap, you can compare the effects of market volatilities on JPMorgan BetaBuilders and Pacer Small 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 JPMorgan BetaBuilders with a short position of Pacer Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan BetaBuilders and Pacer Small.
Diversification Opportunities for JPMorgan BetaBuilders and Pacer Small
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Pacer is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan BetaBuilders Europe and Pacer Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Small Cap and JPMorgan BetaBuilders 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 JPMorgan BetaBuilders Europe are associated (or correlated) with Pacer Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Small Cap has no effect on the direction of JPMorgan BetaBuilders i.e., JPMorgan BetaBuilders and Pacer Small go up and down completely randomly.
Pair Corralation between JPMorgan BetaBuilders and Pacer Small
Given the investment horizon of 90 days JPMorgan BetaBuilders Europe is expected to generate 0.69 times more return on investment than Pacer Small. However, JPMorgan BetaBuilders Europe is 1.45 times less risky than Pacer Small. It trades about 0.12 of its potential returns per unit of risk. Pacer Small Cap is currently generating about 0.04 per unit of risk. If you would invest 7,029 in JPMorgan BetaBuilders Europe on October 6, 2025 and sell it today you would earn a total of 378.00 from holding JPMorgan BetaBuilders Europe or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan BetaBuilders Europe vs. Pacer Small Cap
Performance |
| Timeline |
| JPMorgan BetaBuilders |
| Pacer Small Cap |
JPMorgan BetaBuilders and Pacer Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan BetaBuilders and Pacer Small
The main advantage of trading using opposite JPMorgan BetaBuilders and Pacer Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan BetaBuilders position performs unexpectedly, Pacer Small 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 Pacer Small will offset losses from the drop in Pacer Small's long position.| JPMorgan BetaBuilders vs. iShares Financials ETF | JPMorgan BetaBuilders vs. SPDR SP 600 | JPMorgan BetaBuilders vs. WisdomTree Japan Hedged | JPMorgan BetaBuilders vs. Capital Group International |
| Pacer Small vs. WisdomTree Japan Hedged | Pacer Small vs. WisdomTree MidCap Dividend | Pacer Small vs. SPDR SP 600 | Pacer Small vs. iShares Financials ETF |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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