Correlation Between ProShares Big and JPMorgan Climate
Can any of the company-specific risk be diversified away by investing in both ProShares Big and JPMorgan Climate 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 ProShares Big and JPMorgan Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Big Data and JPMorgan Climate Change, you can compare the effects of market volatilities on ProShares Big and JPMorgan Climate 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 ProShares Big with a short position of JPMorgan Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Big and JPMorgan Climate.
Diversification Opportunities for ProShares Big and JPMorgan Climate
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProShares and JPMorgan is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Big Data and JPMorgan Climate Change in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Climate Change and ProShares Big 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 ProShares Big Data are associated (or correlated) with JPMorgan Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Climate Change has no effect on the direction of ProShares Big i.e., ProShares Big and JPMorgan Climate go up and down completely randomly.
Pair Corralation between ProShares Big and JPMorgan Climate
Considering the 90-day investment horizon ProShares Big Data is expected to generate 1.7 times more return on investment than JPMorgan Climate. However, ProShares Big is 1.7 times more volatile than JPMorgan Climate Change. It trades about 0.62 of its potential returns per unit of risk. JPMorgan Climate Change is currently generating about -0.11 per unit of risk. If you would invest 3,691 in ProShares Big Data on August 26, 2024 and sell it today you would earn a total of 879.00 from holding ProShares Big Data or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Big Data vs. JPMorgan Climate Change
Performance |
| Timeline |
| ProShares Big Data |
| JPMorgan Climate Change |
ProShares Big and JPMorgan Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Big and JPMorgan Climate
The main advantage of trading using opposite ProShares Big and JPMorgan Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Big position performs unexpectedly, JPMorgan Climate 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 Climate will offset losses from the drop in JPMorgan Climate's long position.| ProShares Big vs. ProShares SP Kensho | ProShares Big vs. ProShares SP Kensho | ProShares Big vs. ProShares Smart Materials | ProShares Big vs. ProShares On Demand ETF |
| JPMorgan Climate vs. ProShares Big Data | JPMorgan Climate vs. Direxion Auspice Broad | JPMorgan Climate vs. Eastern Co | JPMorgan Climate vs. American Century Mid |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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