Correlation Between JPMorgan Fundamental and Innovator Russell
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and Innovator 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 Fundamental and Innovator Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Fundamental Data and Innovator Russell 2000, you can compare the effects of market volatilities on JPMorgan Fundamental and Innovator 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 Fundamental with a short position of Innovator Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and Innovator Russell.
Diversification Opportunities for JPMorgan Fundamental and Innovator Russell
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Innovator is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and Innovator Russell 2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Russell 2000 and JPMorgan Fundamental 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 Fundamental Data are associated (or correlated) with Innovator Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Russell 2000 has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and Innovator Russell go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and Innovator Russell
Given the investment horizon of 90 days JPMorgan Fundamental is expected to generate 1.06 times less return on investment than Innovator Russell. In addition to that, JPMorgan Fundamental is 1.55 times more volatile than Innovator Russell 2000. It trades about 0.14 of its total potential returns per unit of risk. Innovator Russell 2000 is currently generating about 0.24 per unit of volatility. If you would invest 3,149 in Innovator Russell 2000 on May 31, 2025 and sell it today you would earn a total of 229.00 from holding Innovator Russell 2000 or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. Innovator Russell 2000
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| Innovator Russell 2000 |
JPMorgan Fundamental and Innovator Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and Innovator Russell
The main advantage of trading using opposite JPMorgan Fundamental and Innovator Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, Innovator 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 Innovator Russell will offset losses from the drop in Innovator Russell's long position.| JPMorgan Fundamental vs. FT Vest Equity | JPMorgan Fundamental vs. Northern Lights | JPMorgan Fundamental vs. Dimensional International High | JPMorgan Fundamental vs. Davis Select International |
| Innovator Russell vs. Innovator Nasdaq 100 Power | Innovator Russell vs. Innovator Nasdaq 100 Power | Innovator Russell vs. Innovator Russell 2000 | Innovator Russell vs. Innovator Equity Power |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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