Correlation Between FlexShares Global and JPMorgan Diversified
Can any of the company-specific risk be diversified away by investing in both FlexShares Global and JPMorgan Diversified 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 FlexShares Global and JPMorgan Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShares Global Quality and JPMorgan Diversified Return, you can compare the effects of market volatilities on FlexShares Global and JPMorgan Diversified 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 FlexShares Global with a short position of JPMorgan Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShares Global and JPMorgan Diversified.
Diversification Opportunities for FlexShares Global and JPMorgan Diversified
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FlexShares and JPMorgan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding FlexShares Global Quality and JPMorgan Diversified Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Diversified and FlexShares Global 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 FlexShares Global Quality are associated (or correlated) with JPMorgan Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Diversified has no effect on the direction of FlexShares Global i.e., FlexShares Global and JPMorgan Diversified go up and down completely randomly.
Pair Corralation between FlexShares Global and JPMorgan Diversified
Given the investment horizon of 90 days FlexShares Global Quality is expected to generate 0.93 times more return on investment than JPMorgan Diversified. However, FlexShares Global Quality is 1.07 times less risky than JPMorgan Diversified. It trades about 0.06 of its potential returns per unit of risk. JPMorgan Diversified Return is currently generating about 0.06 per unit of risk. If you would invest 5,931 in FlexShares Global Quality on August 14, 2025 and sell it today you would earn a total of 145.00 from holding FlexShares Global Quality or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FlexShares Global Quality vs. JPMorgan Diversified Return
Performance |
| Timeline |
| FlexShares Global Quality |
| JPMorgan Diversified |
FlexShares Global and JPMorgan Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShares Global and JPMorgan Diversified
The main advantage of trading using opposite FlexShares Global and JPMorgan Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShares Global position performs unexpectedly, JPMorgan Diversified 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 Diversified will offset losses from the drop in JPMorgan Diversified's long position.| FlexShares Global vs. Invesco Exchange Traded | FlexShares Global vs. VanEck ETF Trust | FlexShares Global vs. ProShares UltraPro Russell2000 | FlexShares Global vs. JPMorgan Diversified Return |
| JPMorgan Diversified vs. JPMorgan Diversified Return | JPMorgan Diversified vs. JPMorgan Diversified Return | JPMorgan Diversified vs. JPMorgan Diversified Return | JPMorgan Diversified vs. Goldman Sachs 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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