Correlation Between JPMorgan Fundamental and Nuveen ESG
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and Nuveen ESG 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 Nuveen ESG 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 Nuveen ESG Mid Cap, you can compare the effects of market volatilities on JPMorgan Fundamental and Nuveen ESG 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 Nuveen ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and Nuveen ESG.
Diversification Opportunities for JPMorgan Fundamental and Nuveen ESG
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Nuveen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and Nuveen ESG Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen ESG Mid 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 Nuveen ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen ESG Mid has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and Nuveen ESG go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and Nuveen ESG
Given the investment horizon of 90 days JPMorgan Fundamental is expected to generate 1.73 times less return on investment than Nuveen ESG. But when comparing it to its historical volatility, JPMorgan Fundamental Data is 1.17 times less risky than Nuveen ESG. It trades about 0.06 of its potential returns per unit of risk. Nuveen ESG Mid Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,289 in Nuveen ESG Mid Cap on March 28, 2025 and sell it today you would earn a total of 454.00 from holding Nuveen ESG Mid Cap or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. Nuveen ESG Mid Cap
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| Nuveen ESG Mid |
JPMorgan Fundamental and Nuveen ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and Nuveen ESG
The main advantage of trading using opposite JPMorgan Fundamental and Nuveen ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, Nuveen ESG 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 Nuveen ESG will offset losses from the drop in Nuveen ESG's long position.| JPMorgan Fundamental vs. Matthews China Discovery | JPMorgan Fundamental vs. Davis Select International | JPMorgan Fundamental vs. Dimensional ETF Trust | JPMorgan Fundamental vs. Principal Value ETF |
| Nuveen ESG vs. JPMorgan Fundamental Data | Nuveen ESG vs. Matthews China Discovery | Nuveen ESG vs. Davis Select International | Nuveen ESG vs. Dimensional ETF 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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