Correlation Between Nasdaq-100 Profund and Jpmorgan Government
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Profund and Jpmorgan Government 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 Nasdaq-100 Profund and Jpmorgan Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Profund Nasdaq 100 and Jpmorgan Government Bond, you can compare the effects of market volatilities on Nasdaq-100 Profund and Jpmorgan Government 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 Nasdaq-100 Profund with a short position of Jpmorgan Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Profund and Jpmorgan Government.
Diversification Opportunities for Nasdaq-100 Profund and Jpmorgan Government
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nasdaq-100 and Jpmorgan is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Profund Nasdaq 100 and Jpmorgan Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Government Bond and Nasdaq-100 Profund 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 Nasdaq 100 Profund Nasdaq 100 are associated (or correlated) with Jpmorgan Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Government Bond has no effect on the direction of Nasdaq-100 Profund i.e., Nasdaq-100 Profund and Jpmorgan Government go up and down completely randomly.
Pair Corralation between Nasdaq-100 Profund and Jpmorgan Government
Assuming the 90 days horizon Nasdaq 100 Profund Nasdaq 100 is expected to generate 4.61 times more return on investment than Jpmorgan Government. However, Nasdaq-100 Profund is 4.61 times more volatile than Jpmorgan Government Bond. It trades about 0.09 of its potential returns per unit of risk. Jpmorgan Government Bond is currently generating about 0.06 per unit of risk. If you would invest 4,469 in Nasdaq 100 Profund Nasdaq 100 on November 3, 2024 and sell it today you would earn a total of 102.00 from holding Nasdaq 100 Profund Nasdaq 100 or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Profund Nasdaq 100 vs. Jpmorgan Government Bond
Performance |
| Timeline |
| Nasdaq 100 Profund |
| Jpmorgan Government Bond |
Nasdaq-100 Profund and Jpmorgan Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Profund and Jpmorgan Government
The main advantage of trading using opposite Nasdaq-100 Profund and Jpmorgan Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Profund position performs unexpectedly, Jpmorgan Government 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 Jpmorgan Government will offset losses from the drop in Jpmorgan Government's long position.| Nasdaq-100 Profund vs. Bull Profund Investor | Nasdaq-100 Profund vs. Small Cap Profund Small Cap | Nasdaq-100 Profund vs. Mid Cap Profund Mid Cap | Nasdaq-100 Profund vs. Small Cap Growth Profund |
| Jpmorgan Government vs. World Precious Minerals | Jpmorgan Government vs. Vy Goldman Sachs | Jpmorgan Government vs. Invesco Gold Special | Jpmorgan Government vs. Fidelity Advisor Gold |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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