Correlation Between IShares Intermediate and J P
Can any of the company-specific risk be diversified away by investing in both IShares Intermediate and J P 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 IShares Intermediate and J P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Intermediate GovernmentCredit and J P Morgan, you can compare the effects of market volatilities on IShares Intermediate and J P 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 IShares Intermediate with a short position of J P. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Intermediate and J P.
Diversification Opportunities for IShares Intermediate and J P
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and JPLD is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding iShares Intermediate Governmen and J P Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J P Morgan and IShares Intermediate 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 iShares Intermediate GovernmentCredit are associated (or correlated) with J P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J P Morgan has no effect on the direction of IShares Intermediate i.e., IShares Intermediate and J P go up and down completely randomly.
Pair Corralation between IShares Intermediate and J P
Considering the 90-day investment horizon iShares Intermediate GovernmentCredit is expected to generate 1.46 times more return on investment than J P. However, IShares Intermediate is 1.46 times more volatile than J P Morgan. It trades about 0.23 of its potential returns per unit of risk. J P Morgan is currently generating about 0.27 per unit of risk. If you would invest 10,541 in iShares Intermediate GovernmentCredit on July 20, 2025 and sell it today you would earn a total of 246.00 from holding iShares Intermediate GovernmentCredit or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Intermediate Governmen vs. J P Morgan
Performance |
| Timeline |
| iShares Intermediate |
| J P Morgan |
IShares Intermediate and J P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Intermediate and J P
The main advantage of trading using opposite IShares Intermediate and J P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Intermediate position performs unexpectedly, J P 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 J P will offset losses from the drop in J P's long position.| IShares Intermediate vs. SPDR Series Trust | IShares Intermediate vs. iShares GovernmentCredit Bond | IShares Intermediate vs. Xtrackers USD High | IShares Intermediate vs. iShares ESG Aggregate |
| J P vs. Morgan Stanley ETF | J P vs. Capital Group Core | J P vs. SPDR Bloomberg Investment | J P vs. iShares Russell Top |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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