Correlation Between Volatility Shares and JPMorgan International
Can any of the company-specific risk be diversified away by investing in both Volatility Shares and JPMorgan International 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 JPMorgan International 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 JPMorgan International Bond, you can compare the effects of market volatilities on Volatility Shares and JPMorgan International 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 JPMorgan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volatility Shares and JPMorgan International.
Diversification Opportunities for Volatility Shares and JPMorgan International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Volatility and JPMorgan is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Volatility Shares Trust and JPMorgan International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan International 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 JPMorgan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan International has no effect on the direction of Volatility Shares i.e., Volatility Shares and JPMorgan International go up and down completely randomly.
Pair Corralation between Volatility Shares and JPMorgan International
Given the investment horizon of 90 days Volatility Shares Trust is expected to generate 32.47 times more return on investment than JPMorgan International. However, Volatility Shares is 32.47 times more volatile than JPMorgan International Bond. It trades about 0.11 of its potential returns per unit of risk. JPMorgan International Bond is currently generating about 0.11 per unit of risk. If you would invest 1,787 in Volatility Shares Trust on August 27, 2024 and sell it today you would earn a total of 4,631 from holding Volatility Shares Trust or generate 259.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Volatility Shares Trust vs. JPMorgan International Bond
Performance |
| Timeline |
| Volatility Shares Trust |
| JPMorgan International |
Volatility Shares and JPMorgan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volatility Shares and JPMorgan International
The main advantage of trading using opposite Volatility Shares and JPMorgan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volatility Shares position performs unexpectedly, JPMorgan International 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 International will offset losses from the drop in JPMorgan International's long position.| Volatility Shares vs. Grayscale Bitcoin Trust | Volatility Shares vs. Siren Nasdaq NexGen | Volatility Shares vs. Grayscale Bitcoin Mini | Volatility Shares vs. First Trust SkyBridge |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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