Correlation Between IShares Trust and Jpmorgan Intrepid

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

By analyzing existing cross correlation between iShares Trust and Jpmorgan Intrepid Mid, you can compare the effects of market volatilities on IShares Trust and Jpmorgan Intrepid 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 IShares Trust with a short position of Jpmorgan Intrepid. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Jpmorgan Intrepid.

Diversification Opportunities for IShares Trust and Jpmorgan Intrepid

0.81

Correlation Coefficient

IShares Trust  Jpmorgan Intrepid

Very poor diversification

The 3 months correlation between IShares and Jpmorgan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Jpmorgan Intrepid Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Intrepid Mid and IShares Trust 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 iShares Trust are associated (or correlated) with Jpmorgan Intrepid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Intrepid Mid has no effect on the direction of IShares Trust i.e., IShares Trust and Jpmorgan Intrepid go up and down completely randomly.

Pair Corralation between IShares Trust and Jpmorgan Intrepid

Given the investment horizon of 90 days IShares Trust is expected to generate 2.05 times less return on investment than Jpmorgan Intrepid. But when comparing it to its historical volatility, iShares Trust is 6.84 times less risky than Jpmorgan Intrepid. It trades about 0.31 of its potential returns per unit of risk. Jpmorgan Intrepid Mid is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,541  in Jpmorgan Intrepid Mid on May 5, 2025 and sell it today you would earn a total of  92.00  from holding Jpmorgan Intrepid Mid or generate 5.97% return on investment over 90 days.

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

iShares Trust   vs.  Jpmorgan Intrepid Mid

iShares Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Trust are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental indicators, IShares Trust is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Jpmorgan Intrepid Mid

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Intrepid Mid are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Intrepid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IShares Trust and Jpmorgan Intrepid

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

The idea behind iShares Trust and Jpmorgan Intrepid Mid 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.