Correlation Between Nasdaq 100 and Jp Morgan
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Jp Morgan 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 and Jp Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Jp Morgan Smartretirement, you can compare the effects of market volatilities on Nasdaq 100 and Jp Morgan 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 with a short position of Jp Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Jp Morgan.
Diversification Opportunities for Nasdaq 100 and Jp Morgan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq and JTSQX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement and Nasdaq 100 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 Index Fund are associated (or correlated) with Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Jp Morgan go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Jp Morgan
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 1.77 times more return on investment than Jp Morgan. However, Nasdaq 100 is 1.77 times more volatile than Jp Morgan Smartretirement. It trades about 0.12 of its potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about 0.09 per unit of risk. If you would invest 5,113 in Nasdaq 100 Index Fund on August 29, 2024 and sell it today you would earn a total of 147.00 from holding Nasdaq 100 Index Fund or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Jp Morgan Smartretirement
Performance |
| Timeline |
| Nasdaq 100 Index |
| Jp Morgan Smartretirement |
Nasdaq 100 and Jp Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Jp Morgan
The main advantage of trading using opposite Nasdaq 100 and Jp Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Jp Morgan 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 Jp Morgan will offset losses from the drop in Jp Morgan's long position.| Nasdaq 100 vs. Balanced Fund Retail | Nasdaq 100 vs. Rbc Global Equity | Nasdaq 100 vs. Calamos Global Equity | Nasdaq 100 vs. Touchstone International Equity |
| Jp Morgan vs. Fidelity Freedom Index | Jp Morgan vs. HUMANA INC | Jp Morgan vs. Aquagold International | Jp Morgan vs. Barloworld Ltd ADR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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