Correlation Between WBI BullBear and JP Morgan
Can any of the company-specific risk be diversified away by investing in both WBI BullBear and JP Morgan 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 WBI BullBear and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WBI BullBear Value and JP Morgan Exchange Traded, you can compare the effects of market volatilities on WBI BullBear and JP Morgan 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 WBI BullBear with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of WBI BullBear and JP Morgan.
Diversification Opportunities for WBI BullBear and JP Morgan
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WBI and JFLI is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding WBI BullBear Value and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange and WBI BullBear 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 WBI BullBear Value are associated (or correlated) with JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Exchange has no effect on the direction of WBI BullBear i.e., WBI BullBear and JP Morgan go up and down completely randomly.
Pair Corralation between WBI BullBear and JP Morgan
Given the investment horizon of 90 days WBI BullBear is expected to generate 1.22 times less return on investment than JP Morgan. In addition to that, WBI BullBear is 1.86 times more volatile than JP Morgan Exchange Traded. It trades about 0.06 of its total potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about 0.13 per unit of volatility. If you would invest 4,978 in JP Morgan Exchange Traded on September 12, 2025 and sell it today you would earn a total of 181.00 from holding JP Morgan Exchange Traded or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WBI BullBear Value vs. JP Morgan Exchange Traded
Performance |
| Timeline |
| WBI BullBear Value |
| JP Morgan Exchange |
WBI BullBear and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WBI BullBear and JP Morgan
The main advantage of trading using opposite WBI BullBear and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WBI BullBear position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan's long position.| WBI BullBear vs. WBI BullBear Yield | WBI BullBear vs. WBI BullBear Quality | WBI BullBear vs. JP Morgan Exchange Traded | WBI BullBear vs. First Trust SMID |
| JP Morgan vs. WBI BullBear Value | JP Morgan vs. ProShares Ultra Basic | JP Morgan vs. Northern Lights | JP Morgan vs. ZEGA Buy and |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |