Correlation Between JPMorgan Chase and ProShares Short
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and ProShares Short 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 Short 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 Short Financials, you can compare the effects of market volatilities on JPMorgan Chase and ProShares Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and ProShares Short.
Diversification Opportunities for JPMorgan Chase and ProShares Short
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and ProShares is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ProShares Short Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short Fina 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short Fina has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ProShares Short go up and down completely randomly.
Pair Corralation between JPMorgan Chase and ProShares Short
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.96 times more return on investment than ProShares Short. However, JPMorgan Chase Co is 1.04 times less risky than ProShares Short. It trades about 0.6 of its potential returns per unit of risk. ProShares Short Financials is currently generating about -0.3 per unit of risk. If you would invest 23,877 in JPMorgan Chase Co on November 3, 2024 and sell it today you would earn a total of 2,853 from holding JPMorgan Chase Co or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. ProShares Short Financials
Performance |
| Timeline |
| JPMorgan Chase |
| ProShares Short Fina |
JPMorgan Chase and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and ProShares Short
The main advantage of trading using opposite JPMorgan Chase and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ProShares Short 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 Short will offset losses from the drop in ProShares Short's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Royal Bank of |
| ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short SmallCap600 | ProShares Short vs. ProShares Short MidCap400 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |