Correlation Between JPMorgan Nasdaq and YieldMax AMZN
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and YieldMax AMZN 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 JPMorgan Nasdaq and YieldMax AMZN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Nasdaq Equity and YieldMax AMZN Option, you can compare the effects of market volatilities on JPMorgan Nasdaq and YieldMax AMZN 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 JPMorgan Nasdaq with a short position of YieldMax AMZN. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and YieldMax AMZN.
Diversification Opportunities for JPMorgan Nasdaq and YieldMax AMZN
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and YieldMax is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and YieldMax AMZN Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax AMZN Option and JPMorgan Nasdaq 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 JPMorgan Nasdaq Equity are associated (or correlated) with YieldMax AMZN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax AMZN Option has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and YieldMax AMZN go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and YieldMax AMZN
Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to generate 0.77 times more return on investment than YieldMax AMZN. However, JPMorgan Nasdaq Equity is 1.29 times less risky than YieldMax AMZN. It trades about 0.09 of its potential returns per unit of risk. YieldMax AMZN Option is currently generating about 0.06 per unit of risk. If you would invest 5,635 in JPMorgan Nasdaq Equity on October 20, 2024 and sell it today you would earn a total of 92.00 from holding JPMorgan Nasdaq Equity or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. YieldMax AMZN Option
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| YieldMax AMZN Option |
JPMorgan Nasdaq and YieldMax AMZN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and YieldMax AMZN
The main advantage of trading using opposite JPMorgan Nasdaq and YieldMax AMZN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, YieldMax AMZN 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 YieldMax AMZN will offset losses from the drop in YieldMax AMZN's long position.| JPMorgan Nasdaq vs. JPMorgan Equity Premium | JPMorgan Nasdaq vs. Global X SP | JPMorgan Nasdaq vs. Amplify CWP Enhanced | JPMorgan Nasdaq vs. Global X Russell |
| YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. Tidal Trust II | YieldMax AMZN vs. Direxion Daily META | YieldMax AMZN vs. Direxion Daily META |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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