Correlation Between JPMorgan Fundamental and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both JPMorgan Fundamental and ProShares UltraShort 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 Fundamental and ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Fundamental Data and ProShares UltraShort FTSE, you can compare the effects of market volatilities on JPMorgan Fundamental and ProShares UltraShort 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 Fundamental with a short position of ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Fundamental and ProShares UltraShort.
Diversification Opportunities for JPMorgan Fundamental and ProShares UltraShort
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JPMorgan and ProShares is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Fundamental Data and ProShares UltraShort FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort FTSE and JPMorgan Fundamental 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 Fundamental Data are associated (or correlated) with ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort FTSE has no effect on the direction of JPMorgan Fundamental i.e., JPMorgan Fundamental and ProShares UltraShort go up and down completely randomly.
Pair Corralation between JPMorgan Fundamental and ProShares UltraShort
Given the investment horizon of 90 days JPMorgan Fundamental Data is expected to generate 0.19 times more return on investment than ProShares UltraShort. However, JPMorgan Fundamental Data is 5.22 times less risky than ProShares UltraShort. It trades about 0.16 of its potential returns per unit of risk. ProShares UltraShort FTSE is currently generating about -0.07 per unit of risk. If you would invest 4,968 in JPMorgan Fundamental Data on November 3, 2024 and sell it today you would earn a total of 800.80 from holding JPMorgan Fundamental Data or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 49.6% |
| Values | Daily Returns |
JPMorgan Fundamental Data vs. ProShares UltraShort FTSE
Performance |
| Timeline |
| JPMorgan Fundamental Data |
| ProShares UltraShort FTSE |
JPMorgan Fundamental and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Fundamental and ProShares UltraShort
The main advantage of trading using opposite JPMorgan Fundamental and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Fundamental position performs unexpectedly, ProShares UltraShort 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 UltraShort will offset losses from the drop in ProShares UltraShort's long position.| JPMorgan Fundamental vs. Davis Select International | JPMorgan Fundamental vs. Dimensional ETF Trust | JPMorgan Fundamental vs. Principal Value ETF | JPMorgan Fundamental vs. Vanguard Small Cap Index |
| ProShares UltraShort vs. FT Vest Equity | ProShares UltraShort vs. Northern Lights | ProShares UltraShort vs. Dimensional International High | ProShares UltraShort vs. First Trust Exchange Traded |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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