Correlation Between Jpmorgan Diversified and Gmo Emerging
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Diversified and Gmo Emerging 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 Diversified and Gmo Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Diversified Fund and Gmo Emerging Markets, you can compare the effects of market volatilities on Jpmorgan Diversified and Gmo Emerging 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 Diversified with a short position of Gmo Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Diversified and Gmo Emerging.
Diversification Opportunities for Jpmorgan Diversified and Gmo Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMORGAN and Gmo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Diversified Fund and Gmo Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Markets and Jpmorgan Diversified 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 Diversified Fund are associated (or correlated) with Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Markets has no effect on the direction of Jpmorgan Diversified i.e., Jpmorgan Diversified and Gmo Emerging go up and down completely randomly.
Pair Corralation between Jpmorgan Diversified and Gmo Emerging
Assuming the 90 days horizon Jpmorgan Diversified Fund is expected to generate 0.56 times more return on investment than Gmo Emerging. However, Jpmorgan Diversified Fund is 1.79 times less risky than Gmo Emerging. It trades about 0.2 of its potential returns per unit of risk. Gmo Emerging Markets is currently generating about 0.11 per unit of risk. If you would invest 1,606 in Jpmorgan Diversified Fund on June 8, 2025 and sell it today you would earn a total of 85.00 from holding Jpmorgan Diversified Fund or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Diversified Fund vs. Gmo Emerging Markets
Performance |
| Timeline |
| Jpmorgan Diversified |
| Gmo Emerging Markets |
Jpmorgan Diversified and Gmo Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Diversified and Gmo Emerging
The main advantage of trading using opposite Jpmorgan Diversified and Gmo Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Diversified position performs unexpectedly, Gmo Emerging 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 Gmo Emerging will offset losses from the drop in Gmo Emerging's long position.| Jpmorgan Diversified vs. Jpmorgan Equity Fund | Jpmorgan Diversified vs. Jpmorgan Value Advantage | Jpmorgan Diversified vs. Jpmorgan Intrepid Mid |
| Gmo Emerging vs. Gmo E Plus | Gmo Emerging vs. Gmo Trust | Gmo Emerging vs. Gmo Treasury Fund | Gmo Emerging vs. Gmo Trust |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |