Correlation Between JPMorgan Chase and ProShares UltraPro
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and ProShares UltraPro 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 UltraPro 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 UltraPro Short, you can compare the effects of market volatilities on JPMorgan Chase and ProShares UltraPro 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 UltraPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and ProShares UltraPro.
Diversification Opportunities for JPMorgan Chase and ProShares UltraPro
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and ProShares is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ProShares UltraPro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraPro Short 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 UltraPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraPro Short has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ProShares UltraPro go up and down completely randomly.
Pair Corralation between JPMorgan Chase and ProShares UltraPro
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.55 times more return on investment than ProShares UltraPro. However, JPMorgan Chase Co is 1.81 times less risky than ProShares UltraPro. It trades about 0.2 of its potential returns per unit of risk. ProShares UltraPro Short is currently generating about -0.22 per unit of risk. If you would invest 22,290 in JPMorgan Chase Co on August 30, 2024 and sell it today you would earn a total of 2,689 from holding JPMorgan Chase Co or generate 12.06% 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 UltraPro Short
Performance |
| Timeline |
| JPMorgan Chase |
| ProShares UltraPro Short |
JPMorgan Chase and ProShares UltraPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and ProShares UltraPro
The main advantage of trading using opposite JPMorgan Chase and ProShares UltraPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ProShares UltraPro 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 UltraPro will offset losses from the drop in ProShares UltraPro's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Royal Bank of | JPMorgan Chase vs. Nu Holdings |
| ProShares UltraPro vs. Dimensional ETF Trust | ProShares UltraPro vs. Vanguard Small Cap Index | ProShares UltraPro vs. First Trust Multi Manager | ProShares UltraPro vs. Vanguard SP Small Cap |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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