Two Equities Correlation Analysis
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JPM
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for JPMorgan Chase and NYSE Composite
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and NYSE is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and JPMorgan Chase 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 Chase Co are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and NYSE Composite go up and down completely randomly.
Pair Corralation between JPMorgan Chase and NYSE Composite
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.5 times more return on investment than NYSE Composite. However, JPMorgan Chase is 2.5 times more volatile than NYSE Composite. It trades about -0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 19,459 in JPMorgan Chase Co on January 26, 2024 and sell it today you would lose (151.00) from holding JPMorgan Chase Co or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. NYSE Composite
Performance |
| Timeline |
JPMorgan Chase and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
JPMorgan Chase Co
Pair trading matchups for JPMorgan Chase
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with JPMorgan Chase and NYSE Composite
The main advantage of trading using opposite JPMorgan Chase and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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