Correlation Between JPMorgan Chase and Return Stacked

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

Diversification Opportunities for JPMorgan Chase and Return Stacked

-0.77

Correlation Coefficient

JPMorgan Chase  Return Stacked

Pay attention - limited upside

The 3 months correlation between JPMorgan and Return is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Return Stacked Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Return Stacked Bonds 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 Return Stacked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Return Stacked Bonds has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Return Stacked go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Return Stacked

Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.48 times more return on investment than Return Stacked. However, JPMorgan Chase is 2.48 times more volatile than Return Stacked Bonds. It trades about 0.1 of its potential returns per unit of risk. Return Stacked Bonds is currently generating about -0.17 per unit of risk. If you would invest  12,451  in JPMorgan Chase Co on September 13, 2024 and sell it today you would earn a total of  11,902  from holding JPMorgan Chase Co or generate 95.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	16.19%
Values	Daily Returns

JPMorgan Chase Co  vs.  Return Stacked Bonds

JPMorgan Chase

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Return Stacked Bonds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Return Stacked Bonds has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with JPMorgan Chase and Return Stacked

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

The idea behind JPMorgan Chase Co and Return Stacked Bonds 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.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.