Correlation Between Vanguard Strategic and Jpmorgan Emerging
Can any of the company-specific risk be diversified away by investing in both Vanguard Strategic and Jpmorgan 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 Vanguard Strategic and Jpmorgan Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Strategic Equity and Jpmorgan Emerging Markets, you can compare the effects of market volatilities on Vanguard Strategic and Jpmorgan 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 Vanguard Strategic with a short position of Jpmorgan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Strategic and Jpmorgan Emerging.
Diversification Opportunities for Vanguard Strategic and Jpmorgan Emerging
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vanguard and Jpmorgan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Strategic Equity and Jpmorgan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Emerging Markets and Vanguard Strategic 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 Vanguard Strategic Equity are associated (or correlated) with Jpmorgan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Emerging Markets has no effect on the direction of Vanguard Strategic i.e., Vanguard Strategic and Jpmorgan Emerging go up and down completely randomly.
Pair Corralation between Vanguard Strategic and Jpmorgan Emerging
Assuming the 90 days horizon Vanguard Strategic is expected to generate 2.2 times less return on investment than Jpmorgan Emerging. But when comparing it to its historical volatility, Vanguard Strategic Equity is 1.04 times less risky than Jpmorgan Emerging. It trades about 0.06 of its potential returns per unit of risk. Jpmorgan Emerging Markets is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,792 in Jpmorgan Emerging Markets on September 9, 2025 and sell it today you would earn a total of 332.00 from holding Jpmorgan Emerging Markets or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Strategic Equity vs. Jpmorgan Emerging Markets
Performance |
| Timeline |
| Vanguard Strategic Equity |
| Jpmorgan Emerging Markets |
Vanguard Strategic and Jpmorgan Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Strategic and Jpmorgan Emerging
The main advantage of trading using opposite Vanguard Strategic and Jpmorgan Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Strategic position performs unexpectedly, Jpmorgan 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 Jpmorgan Emerging will offset losses from the drop in Jpmorgan Emerging's long position.| Vanguard Strategic vs. Vanguard Tax Managed Small Cap | Vanguard Strategic vs. T Rowe Price | Vanguard Strategic vs. Tiaa Cref Large Cap Value | Vanguard Strategic vs. T Rowe Price |
| Jpmorgan Emerging vs. Fidelity Emerging Markets | Jpmorgan Emerging vs. T Rowe Price | Jpmorgan Emerging vs. Fidelity Advisor Emerging | Jpmorgan Emerging vs. Clearbridge Dividend Strategy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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