Correlation Between Algoma Steel and JPMORGAN
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By analyzing existing cross correlation between Algoma Steel Group and JPMORGAN CHASE CO, you can compare the effects of market volatilities on Algoma Steel and JPMORGAN 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 Algoma Steel with a short position of JPMORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and JPMORGAN.
Diversification Opportunities for Algoma Steel and JPMORGAN
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Algoma and JPMORGAN is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and JPMORGAN CHASE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN CHASE CO and Algoma Steel 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 Algoma Steel Group are associated (or correlated) with JPMORGAN. 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 CO has no effect on the direction of Algoma Steel i.e., Algoma Steel and JPMORGAN go up and down completely randomly.
Pair Corralation between Algoma Steel and JPMORGAN
Given the investment horizon of 90 days Algoma Steel Group is expected to generate 1.65 times more return on investment than JPMORGAN. However, Algoma Steel is 1.65 times more volatile than JPMORGAN CHASE CO. It trades about 0.06 of its potential returns per unit of risk. JPMORGAN CHASE CO is currently generating about 0.01 per unit of risk. If you would invest 585.00 in Algoma Steel Group on September 12, 2024 and sell it today you would earn a total of 427.00 from holding Algoma Steel Group or generate 72.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Algoma Steel Group vs. JPMORGAN CHASE CO
Performance |
| Timeline |
| Algoma Steel Group |
| JPMORGAN CHASE CO |
Algoma Steel and JPMORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algoma Steel and JPMORGAN
The main advantage of trading using opposite Algoma Steel and JPMORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel position performs unexpectedly, JPMORGAN 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 will offset losses from the drop in JPMORGAN's long position.| Algoma Steel vs. Friedman Industries | Algoma Steel vs. ArcelorMittal SA | Algoma Steel vs. Aperam PK | Algoma Steel vs. Acerinox SA ADR |
| JPMORGAN vs. GameStop Corp | JPMORGAN vs. Algoma Steel Group | JPMORGAN vs. Park Electrochemical | JPMORGAN vs. Summit Environmental |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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