Correlation Between Profunds Ultrashort and Jpmorgan Trust
Can any of the company-specific risk be diversified away by investing in both Profunds Ultrashort and Jpmorgan Trust 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 Profunds Ultrashort and Jpmorgan Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profunds Ultrashort Nasdaq 100 and Jpmorgan Trust I, you can compare the effects of market volatilities on Profunds Ultrashort and Jpmorgan Trust 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 Profunds Ultrashort with a short position of Jpmorgan Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds Ultrashort and Jpmorgan Trust.
Diversification Opportunities for Profunds Ultrashort and Jpmorgan Trust
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Profunds and Jpmorgan is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Profunds Ultrashort Nasdaq 100 and Jpmorgan Trust I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Trust I and Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100 are associated (or correlated) with Jpmorgan Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Trust I has no effect on the direction of Profunds Ultrashort i.e., Profunds Ultrashort and Jpmorgan Trust go up and down completely randomly.
Pair Corralation between Profunds Ultrashort and Jpmorgan Trust
Assuming the 90 days horizon Profunds Ultrashort Nasdaq 100 is expected to under-perform the Jpmorgan Trust. But the mutual fund apears to be less risky and, when comparing its historical volatility, Profunds Ultrashort Nasdaq 100 is 8.73 times less risky than Jpmorgan Trust. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Jpmorgan Trust I is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Jpmorgan Trust I on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Jpmorgan Trust I or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Profunds Ultrashort Nasdaq 100 vs. Jpmorgan Trust I
Performance |
| Timeline |
| Profunds Ultrashort |
| Jpmorgan Trust I |
Profunds Ultrashort and Jpmorgan Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profunds Ultrashort and Jpmorgan Trust
The main advantage of trading using opposite Profunds Ultrashort and Jpmorgan Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profunds Ultrashort position performs unexpectedly, Jpmorgan Trust 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 Trust will offset losses from the drop in Jpmorgan Trust's long position.| Profunds Ultrashort vs. Oil Gas Ultrasector | Profunds Ultrashort vs. Hennessy Bp Energy | Profunds Ultrashort vs. Alpsalerian Energy Infrastructure | Profunds Ultrashort vs. Fidelity Advisor Energy |
| Jpmorgan Trust vs. Vanguard Total Stock | Jpmorgan Trust vs. Vanguard 500 Index | Jpmorgan Trust vs. Vanguard Total Stock | Jpmorgan Trust vs. Vanguard Total Stock |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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