Correlation Between JPMorgan Chase and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and ProShares 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 Chase and ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and ProShares Trust, you can compare the effects of market volatilities on JPMorgan Chase and ProShares 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 Chase with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and ProShares Trust.
Diversification Opportunities for JPMorgan Chase and ProShares Trust
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and ProShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust and JPMorgan Chase 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 Chase Co are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ProShares Trust go up and down completely randomly.
Pair Corralation between JPMorgan Chase and ProShares Trust
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 42.86 times less return on investment than ProShares Trust. But when comparing it to its historical volatility, JPMorgan Chase Co is 52.53 times less risky than ProShares Trust. It trades about 0.11 of its potential returns per unit of risk. ProShares Trust is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.00 in ProShares Trust on September 1, 2024 and sell it today you would earn a total of 2,709 from holding ProShares Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.62% |
| Values | Daily Returns |
JPMorgan Chase Co vs. ProShares Trust
Performance |
| Timeline |
| JPMorgan Chase |
| ProShares Trust |
JPMorgan Chase and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and ProShares Trust
The main advantage of trading using opposite JPMorgan Chase and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ProShares 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 ProShares Trust will offset losses from the drop in ProShares Trust's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| ProShares Trust vs. Vanguard Total Stock | ProShares Trust vs. SPDR SP 500 | ProShares Trust vs. iShares Core SP | ProShares Trust vs. Vanguard Total Bond |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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