Correlation Between ProShares Ultra and JPMorgan Fundamental
Can any of the company-specific risk be diversified away by investing in both ProShares Ultra and JPMorgan Fundamental 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 ProShares Ultra and JPMorgan Fundamental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Ultra Yen and JPMorgan Fundamental Data, you can compare the effects of market volatilities on ProShares Ultra and JPMorgan Fundamental 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 ProShares Ultra with a short position of JPMorgan Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Ultra and JPMorgan Fundamental.
Diversification Opportunities for ProShares Ultra and JPMorgan Fundamental
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and JPMorgan is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra Yen and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data and ProShares Ultra 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 ProShares Ultra Yen are associated (or correlated) with JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of ProShares Ultra i.e., ProShares Ultra and JPMorgan Fundamental go up and down completely randomly.
Pair Corralation between ProShares Ultra and JPMorgan Fundamental
Considering the 90-day investment horizon ProShares Ultra Yen is expected to under-perform the JPMorgan Fundamental. In addition to that, ProShares Ultra is 1.76 times more volatile than JPMorgan Fundamental Data. It trades about -0.01 of its total potential returns per unit of risk. JPMorgan Fundamental Data is currently generating about 0.17 per unit of volatility. If you would invest 5,610 in JPMorgan Fundamental Data on August 29, 2024 and sell it today you would earn a total of 198.00 from holding JPMorgan Fundamental Data or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Ultra Yen vs. JPMorgan Fundamental Data
Performance |
| Timeline |
| ProShares Ultra Yen |
| JPMorgan Fundamental Data |
ProShares Ultra and JPMorgan Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Ultra and JPMorgan Fundamental
The main advantage of trading using opposite ProShares Ultra and JPMorgan Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Ultra position performs unexpectedly, JPMorgan Fundamental 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 Fundamental will offset losses from the drop in JPMorgan Fundamental's long position.| ProShares Ultra vs. ProShares Ultra Euro | ProShares Ultra vs. ProShares UltraShort Yen | ProShares Ultra vs. ProShares Ultra Telecommunications | ProShares Ultra vs. ProShares Ultra Consumer |
| JPMorgan Fundamental vs. FT Vest Equity | JPMorgan Fundamental vs. Northern Lights | JPMorgan Fundamental vs. Dimensional International High | JPMorgan Fundamental vs. First Trust Exchange Traded |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |