Correlation Between Bitcoin and Jpmorgan Disciplined

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Can any of the company-specific risk be diversified away by investing in both Bitcoin and Jpmorgan Disciplined 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 Bitcoin and Jpmorgan Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Jpmorgan Disciplined Equity, you can compare the effects of market volatilities on Bitcoin and Jpmorgan Disciplined 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 Bitcoin with a short position of Jpmorgan Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Jpmorgan Disciplined.

Diversification Opportunities for Bitcoin and Jpmorgan Disciplined

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between Bitcoin and Jpmorgan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Jpmorgan Disciplined Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Disciplined and Bitcoin 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 Bitcoin are associated (or correlated) with Jpmorgan Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Disciplined has no effect on the direction of Bitcoin i.e., Bitcoin and Jpmorgan Disciplined go up and down completely randomly.

Pair Corralation between Bitcoin and Jpmorgan Disciplined

Assuming the 90 days trading horizon Bitcoin is expected to generate 3.02 times more return on investment than Jpmorgan Disciplined. However, Bitcoin is 3.02 times more volatile than Jpmorgan Disciplined Equity. It trades about 0.24 of its potential returns per unit of risk. Jpmorgan Disciplined Equity is currently generating about -0.02 per unit of risk. If you would invest  6,657,777  in Bitcoin on October 24, 2024 and sell it today you would earn a total of  3,935,023  from holding Bitcoin or generate 59.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy93.65%
ValuesDaily Returns

Bitcoin  vs.  Jpmorgan Disciplined Equity

 Performance 
       Timeline  
Bitcoin 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.
Jpmorgan Disciplined 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jpmorgan Disciplined Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan Disciplined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bitcoin and Jpmorgan Disciplined Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin and Jpmorgan Disciplined

The main advantage of trading using opposite Bitcoin and Jpmorgan Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Jpmorgan Disciplined 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 Disciplined will offset losses from the drop in Jpmorgan Disciplined's long position.
The idea behind Bitcoin and Jpmorgan Disciplined Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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