Correlation Between JPMorgan Nasdaq and IShares Trust
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and IShares 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 IShares 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 iShares Trust , you can compare the effects of market volatilities on JPMorgan Nasdaq and IShares 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 IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and IShares Trust.
Diversification Opportunities for JPMorgan Nasdaq and IShares Trust
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and IShares is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust 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 IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and IShares Trust go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and IShares Trust
Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to generate 0.8 times more return on investment than IShares Trust. However, JPMorgan Nasdaq Equity is 1.25 times less risky than IShares Trust. It trades about 0.19 of its potential returns per unit of risk. iShares Trust is currently generating about -0.19 per unit of risk. If you would invest 5,367 in JPMorgan Nasdaq Equity on August 25, 2024 and sell it today you would earn a total of 290.00 from holding JPMorgan Nasdaq Equity or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. iShares Trust
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| iShares Trust |
JPMorgan Nasdaq and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and IShares Trust
The main advantage of trading using opposite JPMorgan Nasdaq and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, IShares 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 IShares Trust will offset losses from the drop in IShares 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 |
| IShares Trust vs. iShares Treasury Floating | IShares Trust vs. iShares iBonds Dec | IShares Trust vs. iShares iBonds Dec | IShares Trust vs. iShares 0 3 Month |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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