Correlation Between Dow Jones and JPMORGAN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and JPMORGAN CHASE 425, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of JPMORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and JPMORGAN.
Diversification Opportunities for Dow Jones and JPMORGAN
Excellent diversification
The 3 months correlation between Dow and JPMORGAN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and JPMORGAN CHASE 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN CHASE 425 and Dow Jones 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 Dow Jones Industrial 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 425 has no effect on the direction of Dow Jones i.e., Dow Jones and JPMORGAN go up and down completely randomly.
Pair Corralation between Dow Jones and JPMORGAN
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.19 times more return on investment than JPMORGAN. However, Dow Jones is 1.19 times more volatile than JPMORGAN CHASE 425. It trades about 0.12 of its potential returns per unit of risk. JPMORGAN CHASE 425 is currently generating about 0.01 per unit of risk. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.93% |
| Values | Daily Returns |
Dow Jones Industrial vs. JPMORGAN CHASE 425
Performance |
| Timeline |
Dow Jones and JPMORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
JPMORGAN CHASE 425
Pair trading matchups for JPMORGAN
Pair Trading with Dow Jones and JPMORGAN
The main advantage of trading using opposite Dow Jones and JPMORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
| JPMORGAN vs. AEP TEX INC | JPMORGAN vs. US BANK NATIONAL | JPMORGAN vs. American Express | JPMORGAN vs. Chevron Corp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |