Correlation Between Embark Commodity and Jpmorgan Global

Can any of the company-specific risk be diversified away by investing in both Embark Commodity and Jpmorgan Global 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 Embark Commodity and Jpmorgan Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Embark Commodity Strategy and Jpmorgan Global Allocation, you can compare the effects of market volatilities on Embark Commodity and Jpmorgan Global 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 Embark Commodity with a short position of Jpmorgan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embark Commodity and Jpmorgan Global.

Diversification Opportunities for Embark Commodity and Jpmorgan Global

0.73

Correlation Coefficient

Embark Commodity  Jpmorgan Global

Poor diversification

The 3 months correlation between Embark and Jpmorgan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Embark Commodity Strategy and Jpmorgan Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Global Allo and Embark Commodity 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 Embark Commodity Strategy are associated (or correlated) with Jpmorgan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Global Allo has no effect on the direction of Embark Commodity i.e., Embark Commodity and Jpmorgan Global go up and down completely randomly.

Pair Corralation between Embark Commodity and Jpmorgan Global

Assuming the 90 days horizon Embark Commodity is expected to generate 1.32 times less return on investment than Jpmorgan Global. In addition to that, Embark Commodity is 1.23 times more volatile than Jpmorgan Global Allocation. It trades about 0.12 of its total potential returns per unit of risk. Jpmorgan Global Allocation is currently generating about 0.19 per unit of volatility. If you would invest  2,145  in Jpmorgan Global Allocation on July 6, 2025 and sell it today you would earn a total of  116.00  from holding Jpmorgan Global Allocation or generate 5.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Embark Commodity Strategy  vs.  Jpmorgan Global Allocation

Embark Commodity Strategy

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Embark Commodity Strategy are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Embark Commodity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Global Allo

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Global Allocation are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Embark Commodity and Jpmorgan Global

The main advantage of trading using opposite Embark Commodity and Jpmorgan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embark Commodity position performs unexpectedly, Jpmorgan Global 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 Global will offset losses from the drop in Jpmorgan Global's long position.

The idea behind Embark Commodity Strategy and Jpmorgan Global Allocation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.