Correlation Between JPMorgan Climate and ProShares Supply
Can any of the company-specific risk be diversified away by investing in both JPMorgan Climate and ProShares Supply 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 Climate and ProShares Supply into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Climate Change and ProShares Supply Chain, you can compare the effects of market volatilities on JPMorgan Climate and ProShares Supply 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 Climate with a short position of ProShares Supply. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Climate and ProShares Supply.
Diversification Opportunities for JPMorgan Climate and ProShares Supply
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JPMorgan and ProShares is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Climate Change and ProShares Supply Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Supply Chain and JPMorgan Climate 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 Climate Change are associated (or correlated) with ProShares Supply. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Supply Chain has no effect on the direction of JPMorgan Climate i.e., JPMorgan Climate and ProShares Supply go up and down completely randomly.
Pair Corralation between JPMorgan Climate and ProShares Supply
Given the investment horizon of 90 days JPMorgan Climate Change is expected to under-perform the ProShares Supply. In addition to that, JPMorgan Climate is 1.29 times more volatile than ProShares Supply Chain. It trades about -0.12 of its total potential returns per unit of risk. ProShares Supply Chain is currently generating about 0.18 per unit of volatility. If you would invest 4,055 in ProShares Supply Chain on August 30, 2024 and sell it today you would earn a total of 113.00 from holding ProShares Supply Chain or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Climate Change vs. ProShares Supply Chain
Performance |
| Timeline |
| JPMorgan Climate Change |
| ProShares Supply Chain |
JPMorgan Climate and ProShares Supply Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Climate and ProShares Supply
The main advantage of trading using opposite JPMorgan Climate and ProShares Supply positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Climate position performs unexpectedly, ProShares Supply 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 Supply will offset losses from the drop in ProShares Supply's long position.| JPMorgan Climate vs. Franklin Templeton ETF | JPMorgan Climate vs. TrueShares Technology AI | JPMorgan Climate vs. Franklin Exponential Data | JPMorgan Climate vs. Franklin Genomic Advancements |
| ProShares Supply vs. Materials Select Sector | ProShares Supply vs. Consumer Discretionary Select | ProShares Supply vs. Consumer Staples Select | ProShares Supply vs. Health Care Select |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |