Correlation Between JPETNC and FNB ETN
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By analyzing existing cross correlation between JPETNC and FNB ETN on, you can compare the effects of market volatilities on JPETNC and FNB ETN 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 JPETNC with a short position of FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPETNC and FNB ETN.
Diversification Opportunities for JPETNC and FNB ETN
Weak diversification
The 3 months correlation between JPETNC and FNB is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding JPETNC and FNB ETN on in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN on and JPETNC 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 JPETNC are associated (or correlated) with FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN on has no effect on the direction of JPETNC i.e., JPETNC and FNB ETN go up and down completely randomly.
Pair Corralation between JPETNC and FNB ETN
Assuming the 90 days trading horizon JPETNC is expected to under-perform the FNB ETN. In addition to that, JPETNC is 1.75 times more volatile than FNB ETN on. It trades about -0.12 of its total potential returns per unit of risk. FNB ETN on is currently generating about -0.14 per unit of volatility. If you would invest 180,300 in FNB ETN on on November 28, 2024 and sell it today you would lose (2,000) from holding FNB ETN on or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 53.33% |
| Values | Daily Returns |
JPETNC vs. FNB ETN on
Performance |
| Timeline |
| JPETNC |
| FNB ETN on |
Risk-Adjusted Performance
OK
Weak | Strong |
JPETNC and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPETNC and FNB ETN
The main advantage of trading using opposite JPETNC and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPETNC position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.The idea behind JPETNC and FNB ETN on pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| FNB ETN vs. FNB ETN on | FNB ETN vs. FNB ETN on | FNB ETN vs. FNB Government Inflation | FNB ETN vs. FNB ETN on |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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