Correlation Between JPMorgan Chase and Mainstay Large

Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Mainstay Large 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 Mainstay Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on JPMorgan Chase and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Mainstay Large.

Diversification Opportunities for JPMorgan Chase and Mainstay Large

0.94

Correlation Coefficient

JPMorgan Chase  Mainstay Large

Almost no diversification

The 3 months correlation between JPMorgan and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Mainstay Large go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Mainstay Large

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.04 times less return on investment than Mainstay Large. In addition to that, JPMorgan Chase is 1.14 times more volatile than Mainstay Large Cap. It trades about 0.21 of its total potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.25 per unit of volatility. If you would invest  901.00  in Mainstay Large Cap on May 5, 2025 and sell it today you would earn a total of  143.00  from holding Mainstay Large Cap or generate 15.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

JPMorgan Chase Co  vs.  Mainstay Large Cap

JPMorgan Chase

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Mainstay Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Large showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JPMorgan Chase and Mainstay Large

The main advantage of trading using opposite JPMorgan Chase and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.

The idea behind JPMorgan Chase Co and Mainstay Large Cap 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..