Correlation Between JPMorgan Nasdaq and Cabana Target
Can any of the company-specific risk be diversified away by investing in both JPMorgan Nasdaq and Cabana Target 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 Cabana Target 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 Cabana Target Drawdown, you can compare the effects of market volatilities on JPMorgan Nasdaq and Cabana Target 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 Cabana Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Nasdaq and Cabana Target.
Diversification Opportunities for JPMorgan Nasdaq and Cabana Target
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Cabana is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Nasdaq Equity and Cabana Target Drawdown in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabana Target Drawdown 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 Cabana Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabana Target Drawdown has no effect on the direction of JPMorgan Nasdaq i.e., JPMorgan Nasdaq and Cabana Target go up and down completely randomly.
Pair Corralation between JPMorgan Nasdaq and Cabana Target
Given the investment horizon of 90 days JPMorgan Nasdaq Equity is expected to generate 2.22 times more return on investment than Cabana Target. However, JPMorgan Nasdaq is 2.22 times more volatile than Cabana Target Drawdown. It trades about 0.14 of its potential returns per unit of risk. Cabana Target Drawdown is currently generating about 0.17 per unit of risk. If you would invest 5,500 in JPMorgan Nasdaq Equity on September 11, 2025 and sell it today you would earn a total of 384.00 from holding JPMorgan Nasdaq Equity or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Nasdaq Equity vs. Cabana Target Drawdown
Performance |
| Timeline |
| JPMorgan Nasdaq Equity |
| Cabana Target Drawdown |
JPMorgan Nasdaq and Cabana Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Nasdaq and Cabana Target
The main advantage of trading using opposite JPMorgan Nasdaq and Cabana Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Nasdaq position performs unexpectedly, Cabana Target 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 Cabana Target will offset losses from the drop in Cabana Target's long position.| JPMorgan Nasdaq vs. Vanguard Institutional Total | JPMorgan Nasdaq vs. ProShares UltraPro QQQ | JPMorgan Nasdaq vs. Vanguard Mid Cap Growth | JPMorgan Nasdaq vs. Vanguard Mid Cap Growth |
| Cabana Target vs. ETF Opportunities Trust | Cabana Target vs. SGI Dynamic Tactical | Cabana Target vs. Innovator ETFs Trust | Cabana Target vs. Siren DIVCON Leaders |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |