Correlation Between ProShares UltraShort and JP Morgan
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort 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 ProShares UltraShort and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort Yen and JP Morgan Exchange Traded, you can compare the effects of market volatilities on ProShares UltraShort 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 ProShares UltraShort with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and JP Morgan.
Diversification Opportunities for ProShares UltraShort and JP Morgan
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and JBND is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort Yen and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange and ProShares 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 ProShares UltraShort Yen 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 Exchange has no effect on the direction of ProShares UltraShort i.e., ProShares UltraShort and JP Morgan go up and down completely randomly.
Pair Corralation between ProShares UltraShort and JP Morgan
Considering the 90-day investment horizon ProShares UltraShort Yen is expected to generate 4.96 times more return on investment than JP Morgan. However, ProShares UltraShort is 4.96 times more volatile than JP Morgan Exchange Traded. It trades about 0.02 of its potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about 0.04 per unit of risk. If you would invest 4,453 in ProShares UltraShort Yen on August 29, 2024 and sell it today you would earn a total of 14.00 from holding ProShares UltraShort Yen or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraShort Yen vs. JP Morgan Exchange Traded
Performance |
| Timeline |
| ProShares UltraShort Yen |
| JP Morgan Exchange |
ProShares UltraShort and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and JP Morgan
The main advantage of trading using opposite ProShares UltraShort and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort 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.| ProShares UltraShort vs. ProShares UltraShort Euro | ProShares UltraShort vs. ProShares Ultra Yen | ProShares UltraShort vs. ProShares Ultra Euro | ProShares UltraShort vs. ProShares UltraShort MSCI |
| JP Morgan vs. Valued Advisers Trust | JP Morgan vs. Columbia Diversified Fixed | JP Morgan vs. Principal Exchange Traded Funds | JP Morgan vs. Doubleline Etf Trust |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |