Correlation Between JPMorgan Nasdaq and ProShares
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and ProShares 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 ProShares 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 ProShares SP 500, you can compare the effects of market volatilities on JPMorgan Nasdaq and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and ProShares.
Diversification Opportunities for JPMorgan Nasdaq and ProShares
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and ProShares is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP 500 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and ProShares go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and ProShares
Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to generate 1.06 times more return on investment than ProShares. However, JPMorgan Nasdaq is 1.06 times more volatile than ProShares SP 500. It trades about 0.22 of its potential returns per unit of risk. ProShares SP 500 is currently generating about 0.12 per unit of risk. If you would invest 5,442 in JPMorgan Nasdaq Equity on August 24, 2024 and sell it today you would earn a total of 205.00 from holding JPMorgan Nasdaq Equity or generate 3.77% 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. ProShares SP 500
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| ProShares SP 500 |
JPMorgan Nasdaq and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and ProShares
The main advantage of trading using opposite JPMorgan Nasdaq and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| JPMorgan Nasdaq vs. Global X Nasdaq | JPMorgan Nasdaq vs. First Trust BuyWrite | JPMorgan Nasdaq vs. Amplify CWP Enhanced | JPMorgan Nasdaq vs. ProShares SP MidCap |
| ProShares vs. FT Vest Equity | ProShares vs. Northern Lights | ProShares vs. Dimensional International High | ProShares vs. First Trust Exchange Traded |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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