Correlation Between American Express and JPMORGAN
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By analyzing existing cross correlation between American Express and JPMORGAN CHASE CO, you can compare the effects of market volatilities on American Express 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 American Express with a short position of JPMORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and JPMORGAN.
Diversification Opportunities for American Express and JPMORGAN
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and JPMORGAN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding American Express 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 American Express 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 American Express 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 American Express i.e., American Express and JPMORGAN go up and down completely randomly.
Pair Corralation between American Express and JPMORGAN
Considering the 90-day investment horizon American Express is expected to generate 1.5 times more return on investment than JPMORGAN. However, American Express is 1.5 times more volatile than JPMORGAN CHASE CO. It trades about 0.1 of its potential returns per unit of risk. JPMORGAN CHASE CO is currently generating about 0.0 per unit of risk. If you would invest 15,071 in American Express on August 28, 2024 and sell it today you would earn a total of 15,450 from holding American Express or generate 102.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.58% |
| Values | Daily Returns |
American Express vs. JPMORGAN CHASE CO
Performance |
| Timeline |
| American Express |
| JPMORGAN CHASE CO |
American Express and JPMORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and JPMORGAN
The main advantage of trading using opposite American Express and JPMORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express 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.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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