Correlation Between Nasdaq-100 Fund and Jpmorgan Floating
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Fund and Jpmorgan Floating 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 Fund and Jpmorgan Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and Jpmorgan Floating Rate, you can compare the effects of market volatilities on Nasdaq-100 Fund and Jpmorgan Floating 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 Fund with a short position of Jpmorgan Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Fund and Jpmorgan Floating.
Diversification Opportunities for Nasdaq-100 Fund and Jpmorgan Floating
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nasdaq-100 and Jpmorgan is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and Jpmorgan Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Floating Rate and Nasdaq-100 Fund 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 Fund Class are associated (or correlated) with Jpmorgan Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Floating Rate has no effect on the direction of Nasdaq-100 Fund i.e., Nasdaq-100 Fund and Jpmorgan Floating go up and down completely randomly.
Pair Corralation between Nasdaq-100 Fund and Jpmorgan Floating
Assuming the 90 days horizon Nasdaq 100 Fund Class is expected to under-perform the Jpmorgan Floating. In addition to that, Nasdaq-100 Fund is 8.51 times more volatile than Jpmorgan Floating Rate. It trades about -0.2 of its total potential returns per unit of risk. Jpmorgan Floating Rate is currently generating about -0.23 per unit of volatility. If you would invest 838.00 in Jpmorgan Floating Rate on December 1, 2024 and sell it today you would lose (5.00) from holding Jpmorgan Floating Rate or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Jpmorgan Floating Rate
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Jpmorgan Floating Rate |
Nasdaq-100 Fund and Jpmorgan Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Fund and Jpmorgan Floating
The main advantage of trading using opposite Nasdaq-100 Fund and Jpmorgan Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Fund position performs unexpectedly, Jpmorgan Floating 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 Floating will offset losses from the drop in Jpmorgan Floating's long position.| Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 2x Strategy | Nasdaq-100 Fund vs. Dow 2x Strategy |
| Jpmorgan Floating vs. Ms Global Fixed | Jpmorgan Floating vs. Dodge International Stock | Jpmorgan Floating vs. Doubleline Emerging Markets | Jpmorgan Floating vs. T Rowe Price |
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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