Correlation Between JPMorgan Chase and Twitter
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Twitter 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 Twitter 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 Twitter, you can compare the effects of market volatilities on JPMorgan Chase and Twitter 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 Twitter. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Twitter.
Diversification Opportunities for JPMorgan Chase and Twitter
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Twitter is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Twitter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twitter 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 Twitter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twitter has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Twitter go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Twitter
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 4.55% |
Values | Daily Returns |
JPMorgan Chase Co vs. Twitter
Performance |
Timeline |
JPMorgan Chase |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
JPMorgan Chase and Twitter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Chase and Twitter
The main advantage of trading using opposite JPMorgan Chase and Twitter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Twitter 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 Twitter will offset losses from the drop in Twitter's long position.JPMorgan Chase vs. Bank Of America | JPMorgan Chase vs. Deckers Outdoor | JPMorgan Chase vs. Intuitive Machines | JPMorgan Chase vs. Liberty Interactive LLC |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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