Correlation Between JP Morgan and Canadian Imperial

By analyzing existing cross correlation between JP Morgan Chase and Canadian Imperial Bank you can compare the effects of market volatilities on JP Morgan and Canadian Imperial 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 JP Morgan with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and Canadian Imperial.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both JP Morgan and Canadian Imperial at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing JP Morgan and Canadian Imperial into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for JP Morgan and Canadian Imperial

0.95
Correlation
<div class='circular--portrait-small' style='font-weight: 700;background:#754DEB;color: #F0FFF0;font-size:1.1em;padding-top: 10px;;'>JM</div>
<div class='circular--portrait-small' style='font-weight: 700;background:#169D0B;color: #E6E6FA;font-size:1.1em;padding-top: 10px;;'>CI</div>

Almost no diversification

The 3 months correlation between JP Morgan and Canadian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Chase Co and Canadian Imperial Bank Of Comm in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Canadian Imperial Bank and JP Morgan 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 JP Morgan Chase are associated (or correlated) with Canadian Imperial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Imperial Bank has no effect on the direction of JP Morgan i.e. JP Morgan and Canadian Imperial go up and down completely randomly.

Pair Corralation between JP Morgan and Canadian Imperial

Considering 30-days investment horizon, JP Morgan Chase is expected to generate 1.1 times more return on investment than Canadian Imperial. However, JP Morgan is 1.1 times more volatile than Canadian Imperial Bank. It trades about -0.01 of its potential returns per unit of risk. Canadian Imperial Bank is currently generating about -0.02 per unit of risk. If you would invest  11,611  in JP Morgan Chase on April 28, 2020 and sell it today you would lose (1,586)  from holding JP Morgan Chase or give up 13.66% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

JP Morgan Chase Co  vs.  Canadian Imperial Bank Of Comm

 Performance (%) 
      Timeline 
JP Morgan Chase 
00

JP Morgan Risk-Adjusted Performance

Over the last 30 days JP Morgan Chase has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, JP Morgan is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Canadian Imperial Bank 
00

Canadian Imperial Risk-Adjusted Performance

Over the last 30 days Canadian Imperial Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Canadian Imperial is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

JP Morgan and Canadian Imperial Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page