Correlation Between JPMorgan Nasdaq and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and Tidal Trust 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 Tidal Trust 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 Tidal Trust II, you can compare the effects of market volatilities on JPMorgan Nasdaq and Tidal Trust 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 Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and Tidal Trust.
Diversification Opportunities for JPMorgan Nasdaq and Tidal Trust
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Tidal is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II 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 Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and Tidal Trust go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and Tidal Trust
Given the investment horizon of 90 days JPMorgan Nasdaq is expected to generate 3.73 times less return on investment than Tidal Trust. But when comparing it to its historical volatility, JPMorgan Nasdaq Equity is 1.88 times less risky than Tidal Trust. It trades about 0.11 of its potential returns per unit of risk. Tidal Trust II is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,753 in Tidal Trust II on November 3, 2024 and sell it today you would earn a total of 150.00 from holding Tidal Trust II or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. Tidal Trust II
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| Tidal Trust II |
JPMorgan Nasdaq and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and Tidal Trust
The main advantage of trading using opposite JPMorgan Nasdaq and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust'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 |
| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. Tidal Trust II | Tidal Trust vs. Direxion Daily META | Tidal Trust 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |