Correlation Between JPMorgan Chase and ING Group
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and ING Group 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 Chase and ING Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and ING Group NV, you can compare the effects of market volatilities on JPMorgan Chase and ING Group 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 Chase with a short position of ING Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and ING Group.
Diversification Opportunities for JPMorgan Chase and ING Group
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and ING is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ING Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING Group NV 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 ING Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING Group NV has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ING Group go up and down completely randomly.
Pair Corralation between JPMorgan Chase and ING Group
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.98 times more return on investment than ING Group. However, JPMorgan Chase Co is 1.02 times less risky than ING Group. It trades about -0.01 of its potential returns per unit of risk. ING Group NV is currently generating about -0.06 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. ING Group NV
Performance |
| Timeline |
| JPMorgan Chase |
| ING Group NV |
JPMorgan Chase and ING Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and ING Group
The main advantage of trading using opposite JPMorgan Chase and ING Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ING Group 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 ING Group will offset losses from the drop in ING Group's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| ING Group vs. Natwest Group PLC | ING Group vs. HSBC Holdings PLC | ING Group vs. Banco Santander SA | ING Group vs. UBS Group AG |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |