Correlation Between JC Penney and ProShares
Can any of the company-specific risk be diversified away by investing in both JC Penney and ProShares 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 JC Penney and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J C Penney and ProShares K 1 Free, you can compare the effects of market volatilities on JC Penney and ProShares 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 JC Penney with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of JC Penney and ProShares.
Diversification Opportunities for JC Penney and ProShares
Pay attention - limited upside
The 3 months correlation between JCP and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J C Penney and ProShares K 1 Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares K 1 and JC Penney 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 J C Penney are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares K 1 has no effect on the direction of JC Penney i.e., JC Penney and ProShares go up and down completely randomly.
Pair Corralation between JC Penney and ProShares
If you would invest 4,720 in ProShares K 1 Free on January 20, 2024 and sell it today you would earn a total of 84.00 from holding ProShares K 1 Free or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
J C Penney vs. ProShares K 1 Free
Performance |
| Timeline |
| J C Penney |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares K 1 |
JC Penney and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JC Penney and ProShares
The main advantage of trading using opposite JC Penney and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JC Penney position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| JC Penney vs. Dream Finders HomesInc | JC Penney vs. Emerson Electric | JC Penney vs. Highway Holdings Limited | JC Penney vs. Jeld Wen Holding |
| ProShares vs. United States 12 | ProShares vs. Credit Suisse X Links | ProShares vs. Invesco DB Oil | ProShares vs. United States 12 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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