Correlation Between Kurv Yield and JPMorgan Equity
Can any of the company-specific risk be diversified away by investing in both Kurv Yield and JPMorgan Equity 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 Kurv Yield and JPMorgan Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kurv Yield Premium and JPMorgan Equity Premium, you can compare the effects of market volatilities on Kurv Yield and JPMorgan Equity 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 Kurv Yield with a short position of JPMorgan Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kurv Yield and JPMorgan Equity.
Diversification Opportunities for Kurv Yield and JPMorgan Equity
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kurv and JPMorgan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kurv Yield Premium and JPMorgan Equity Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Equity Premium and Kurv Yield 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 Kurv Yield Premium are associated (or correlated) with JPMorgan Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Equity Premium has no effect on the direction of Kurv Yield i.e., Kurv Yield and JPMorgan Equity go up and down completely randomly.
Pair Corralation between Kurv Yield and JPMorgan Equity
Given the investment horizon of 90 days Kurv Yield Premium is expected to generate 3.63 times more return on investment than JPMorgan Equity. However, Kurv Yield is 3.63 times more volatile than JPMorgan Equity Premium. It trades about 0.15 of its potential returns per unit of risk. JPMorgan Equity Premium is currently generating about 0.06 per unit of risk. If you would invest 2,754 in Kurv Yield Premium on September 13, 2024 and sell it today you would earn a total of 242.00 from holding Kurv Yield Premium or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Kurv Yield Premium vs. JPMorgan Equity Premium
Performance |
| Timeline |
| Kurv Yield Premium |
| JPMorgan Equity Premium |
Kurv Yield and JPMorgan Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kurv Yield and JPMorgan Equity
The main advantage of trading using opposite Kurv Yield and JPMorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kurv Yield position performs unexpectedly, JPMorgan Equity 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 Equity will offset losses from the drop in JPMorgan Equity's long position.| Kurv Yield vs. Global X SP | Kurv Yield vs. Amplify CWP Enhanced | Kurv Yield vs. JPMorgan Nasdaq Equity | Kurv Yield vs. NEOS ETF Trust |
| JPMorgan Equity vs. Global X SP | JPMorgan Equity vs. Amplify CWP Enhanced | JPMorgan Equity vs. JPMorgan Nasdaq Equity | JPMorgan Equity vs. NEOS ETF Trust |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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