Correlation Between JPMorgan BetaBuilders and SPDR Russell
Can any of the company-specific risk be diversified away by investing in both JPMorgan BetaBuilders and SPDR Russell 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 SPDR Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan BetaBuilders Mid and SPDR Russell 1000, you can compare the effects of market volatilities on JPMorgan BetaBuilders and SPDR Russell 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 SPDR Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan BetaBuilders and SPDR Russell.
Diversification Opportunities for JPMorgan BetaBuilders and SPDR Russell
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and SPDR is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan BetaBuilders Mid and SPDR Russell 1000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Russell 1000 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 Mid are associated (or correlated) with SPDR Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Russell 1000 has no effect on the direction of JPMorgan BetaBuilders i.e., JPMorgan BetaBuilders and SPDR Russell go up and down completely randomly.
Pair Corralation between JPMorgan BetaBuilders and SPDR Russell
Given the investment horizon of 90 days JPMorgan BetaBuilders Mid is expected to generate 1.26 times more return on investment than SPDR Russell. However, JPMorgan BetaBuilders is 1.26 times more volatile than SPDR Russell 1000. It trades about 0.12 of its potential returns per unit of risk. SPDR Russell 1000 is currently generating about 0.09 per unit of risk. If you would invest 9,884 in JPMorgan BetaBuilders Mid on July 8, 2025 and sell it today you would earn a total of 633.00 from holding JPMorgan BetaBuilders Mid or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan BetaBuilders Mid vs. SPDR Russell 1000
Performance |
| Timeline |
| JPMorgan BetaBuilders Mid |
| SPDR Russell 1000 |
JPMorgan BetaBuilders and SPDR Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan BetaBuilders and SPDR Russell
The main advantage of trading using opposite JPMorgan BetaBuilders and SPDR Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan BetaBuilders position performs unexpectedly, SPDR Russell 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 SPDR Russell will offset losses from the drop in SPDR Russell's long position.The idea behind JPMorgan BetaBuilders Mid and SPDR Russell 1000 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.
| SPDR Russell vs. SPDR Russell 1000 | SPDR Russell vs. SPDR MSCI USA | SPDR Russell vs. SPDR MSCI EAFE | SPDR Russell vs. SPDR SSGA Small |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |