Correlation Between JPMorgan Nasdaq and YieldMax ABNB

Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and YieldMax ABNB 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 JPMorgan Nasdaq and YieldMax ABNB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JPMorgan Nasdaq Equity and YieldMax ABNB Option, you can compare the effects of market volatilities on JPMorgan Nasdaq and YieldMax ABNB 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 JPMorgan Nasdaq with a short position of YieldMax ABNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and YieldMax ABNB.

Diversification Opportunities for JPMorgan Nasdaq and YieldMax ABNB

0.66

Correlation Coefficient

JPMorgan Nasdaq  YieldMax ABNB

Poor diversification

The 3 months correlation between JPMorgan and YieldMax is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and YieldMax ABNB Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax ABNB Option and JPMorgan Nasdaq 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 JPMorgan Nasdaq Equity are associated (or correlated) with YieldMax ABNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax ABNB Option has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and YieldMax ABNB go up and down completely randomly.

Pair Corralation between JPMorgan Nasdaq and YieldMax ABNB

Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to generate 0.51 times more return on investment than YieldMax ABNB. However, JPMorgan Nasdaq Equity is 1.95 times less risky than YieldMax ABNB. It trades about -0.1 of its potential returns per unit of risk. YieldMax ABNB Option is currently generating about -0.05 per unit of risk. If you would invest  5,584  in JPMorgan Nasdaq Equity on December 30, 2024 and sell it today you would lose (403.00) from holding JPMorgan Nasdaq Equity or give up 7.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

JPMorgan Nasdaq Equity  vs.  YieldMax ABNB Option

JPMorgan Nasdaq Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days JPMorgan Nasdaq Equity has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Etf's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

YieldMax ABNB Option

Risk-Adjusted Performance

Very Weak

Over the last 90 days YieldMax ABNB Option has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with JPMorgan Nasdaq and YieldMax ABNB

The main advantage of trading using opposite JPMorgan Nasdaq and YieldMax ABNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, YieldMax ABNB 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 YieldMax ABNB will offset losses from the drop in YieldMax ABNB's long position.

The idea behind JPMorgan Nasdaq Equity and YieldMax ABNB Option 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.