Correlation Between Volatility Shares and JP Morgan
Can any of the company-specific risk be diversified away by investing in both Volatility Shares 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 Volatility Shares and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volatility Shares Trust and JP Morgan Exchange, you can compare the effects of market volatilities on Volatility Shares 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 Volatility Shares with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volatility Shares and JP Morgan.
Diversification Opportunities for Volatility Shares and JP Morgan
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Volatility and BBLB is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Volatility Shares Trust and JP Morgan Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange and Volatility Shares 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 Volatility Shares Trust 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 Volatility Shares i.e., Volatility Shares and JP Morgan go up and down completely randomly.
Pair Corralation between Volatility Shares and JP Morgan
Given the investment horizon of 90 days Volatility Shares Trust is expected to generate 6.73 times more return on investment than JP Morgan. However, Volatility Shares is 6.73 times more volatile than JP Morgan Exchange. It trades about 0.08 of its potential returns per unit of risk. JP Morgan Exchange is currently generating about -0.01 per unit of risk. If you would invest 1,332 in Volatility Shares Trust on November 27, 2024 and sell it today you would earn a total of 3,692 from holding Volatility Shares Trust or generate 277.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.06% |
| Values | Daily Returns |
Volatility Shares Trust vs. JP Morgan Exchange
Performance |
| Timeline |
| Volatility Shares Trust |
| JP Morgan Exchange |
Volatility Shares and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volatility Shares and JP Morgan
The main advantage of trading using opposite Volatility Shares and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volatility Shares 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.| Volatility Shares vs. Grayscale Funds Trust | Volatility Shares vs. ProShares Trust | Volatility Shares vs. iShares Ethereum Trust | Volatility Shares vs. ProShares Trust |
| JP Morgan vs. Vanguard 0 3 Month | JP Morgan vs. Global X Funds | JP Morgan vs. Vanguard Ultra Short Treasury | JP Morgan vs. US Treasury 12 |
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.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |