Correlation Between National Australia and JPMorgan Chase

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both National Australia and JPMorgan Chase 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 National Australia and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Australia Bank and JPMorgan Chase Co, you can compare the effects of market volatilities on National Australia and JPMorgan Chase 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 National Australia with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Australia and JPMorgan Chase.

Diversification Opportunities for National Australia and JPMorgan Chase

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between National and JPMorgan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding National Australia Bank and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and National Australia 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 National Australia Bank are associated (or correlated) with JPMorgan Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Chase has no effect on the direction of National Australia i.e., National Australia and JPMorgan Chase go up and down completely randomly.

Pair Corralation between National Australia and JPMorgan Chase

Assuming the 90 days horizon National Australia is expected to generate 5.69 times less return on investment than JPMorgan Chase. But when comparing it to its historical volatility, National Australia Bank is 1.53 times less risky than JPMorgan Chase. It trades about 0.11 of its potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  18,345  in JPMorgan Chase Co on December 29, 2023 and sell it today you would earn a total of  1,607  from holding JPMorgan Chase Co or generate 8.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.65%
ValuesDaily Returns

National Australia Bank  vs.  JPMorgan Chase Co

 Performance 
       Timeline  
National Australia Bank 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in National Australia Bank are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental drivers, National Australia may actually be approaching a critical reversion point that can send shares even higher in April 2024.
JPMorgan Chase 

Risk-Adjusted Performance

25 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

National Australia and JPMorgan Chase Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with National Australia and JPMorgan Chase

The main advantage of trading using opposite National Australia and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Australia position performs unexpectedly, JPMorgan Chase 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 Chase will offset losses from the drop in JPMorgan Chase's long position.
The idea behind National Australia Bank and JPMorgan Chase Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine