Correlation Between JPMorgan Market and SPDR SP
Can any of the company-specific risk be diversified away by investing in both JPMorgan Market and SPDR SP 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 Market and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Market Expansion and SPDR SP Homebuilders, you can compare the effects of market volatilities on JPMorgan Market and SPDR SP 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 Market with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Market and SPDR SP.
Diversification Opportunities for JPMorgan Market and SPDR SP
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPMorgan and SPDR is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Market Expansion and SPDR SP Homebuilders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Homebuilders and JPMorgan Market 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 Market Expansion are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Homebuilders has no effect on the direction of JPMorgan Market i.e., JPMorgan Market and SPDR SP go up and down completely randomly.
Pair Corralation between JPMorgan Market and SPDR SP
Given the investment horizon of 90 days JPMorgan Market Expansion is expected to generate 0.67 times more return on investment than SPDR SP. However, JPMorgan Market Expansion is 1.5 times less risky than SPDR SP. It trades about 0.07 of its potential returns per unit of risk. SPDR SP Homebuilders is currently generating about -0.07 per unit of risk. If you would invest 6,150 in JPMorgan Market Expansion on August 14, 2025 and sell it today you would earn a total of 246.00 from holding JPMorgan Market Expansion or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Market Expansion vs. SPDR SP Homebuilders
Performance |
| Timeline |
| JPMorgan Market Expansion |
| SPDR SP Homebuilders |
JPMorgan Market and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Market and SPDR SP
The main advantage of trading using opposite JPMorgan Market and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Market position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.| JPMorgan Market vs. iShares ESG Aware | JPMorgan Market vs. iShares MSCI Germany | JPMorgan Market vs. First Trust LongShort | JPMorgan Market vs. Fidelity MSCI Utilities |
| SPDR SP vs. SPDR SP Semiconductor | SPDR SP vs. SPDR SP Oil | SPDR SP vs. WisdomTree SmallCap Dividend | SPDR SP vs. iShares Global Energy |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |