Correlation Between BSAE and JPMorgan
Can any of the company-specific risk be diversified away by investing in both BSAE and JPMorgan 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 BSAE and JPMorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BSAE and JPMorgan, you can compare the effects of market volatilities on BSAE and JPMorgan 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 BSAE with a short position of JPMorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of BSAE and JPMorgan.
Diversification Opportunities for BSAE and JPMorgan
Pay attention - limited upside
The 3 months correlation between BSAE and JPMorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BSAE and JPMorgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan and BSAE 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 BSAE are associated (or correlated) with JPMorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan has no effect on the direction of BSAE i.e., BSAE and JPMorgan go up and down completely randomly.
Pair Corralation between BSAE and JPMorgan
If you would invest 4,725 in JPMorgan on January 24, 2024 and sell it today you would earn a total of 0.00 from holding JPMorgan or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BSAE vs. JPMorgan
Performance |
| Timeline |
| BSAE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JPMorgan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BSAE and JPMorgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BSAE and JPMorgan
The main advantage of trading using opposite BSAE and JPMorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BSAE position performs unexpectedly, JPMorgan 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 will offset losses from the drop in JPMorgan's long position.| BSAE vs. SPDR DoubleLine Short | BSAE vs. SPDR SSgA Ultra | BSAE vs. SPDR MSCI Emerging | BSAE vs. SPDR Bloomberg International |
| JPMorgan vs. SPDR SP 500 | JPMorgan vs. Schwab Large Cap ETF | JPMorgan vs. iShares Core SP | JPMorgan vs. Vanguard Total Stock |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |