Correlation Between JPMorgan Nasdaq and Kurv Yield

Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and Kurv Yield 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 Kurv Yield 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 Kurv Yield Prm, you can compare the effects of market volatilities on JPMorgan Nasdaq and Kurv Yield 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 Kurv Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and Kurv Yield.

Diversification Opportunities for JPMorgan Nasdaq and Kurv Yield

0.42

Correlation Coefficient

JPMorgan Nasdaq  Kurv Yield

Very weak diversification

The 3 months correlation between JPMorgan and Kurv is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and Kurv Yield Prm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Yield Prm 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 Kurv Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Yield Prm has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and Kurv Yield go up and down completely randomly.

Pair Corralation between JPMorgan Nasdaq and Kurv Yield

Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to under-perform the Kurv Yield. But the etf apears to be less risky and, when comparing its historical volatility, JPMorgan Nasdaq Equity is 1.84 times less risky than Kurv Yield. The etf trades about -0.1 of its potential returns per unit of risk. The Kurv Yield Prm is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,240  in Kurv Yield Prm on December 28, 2024 and sell it today you would earn a total of  105.00  from holding Kurv Yield Prm or generate 3.24% return on investment over 90 days.

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

JPMorgan Nasdaq Equity  vs.  Kurv Yield Prm

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.

Kurv Yield Prm

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Yield Prm are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable essential indicators, Kurv Yield is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with JPMorgan Nasdaq and Kurv Yield

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

The idea behind JPMorgan Nasdaq Equity and Kurv Yield Prm 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.