Correlation Between Electronic Arts and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and JPMorgan Chase 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 Electronic Arts and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and JPMorgan Chase Co, you can compare the effects of market volatilities on Electronic Arts and JPMorgan Chase 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 Electronic Arts with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and JPMorgan Chase.
Diversification Opportunities for Electronic Arts and JPMorgan Chase
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Electronic and JPMorgan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Electronic Arts 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 Electronic Arts are associated (or correlated) with JPMorgan Chase. 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 has no effect on the direction of Electronic Arts i.e., Electronic Arts and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Electronic Arts and JPMorgan Chase
Assuming the 90 days trading horizon Electronic Arts is expected to generate 1.44 times less return on investment than JPMorgan Chase. But when comparing it to its historical volatility, Electronic Arts is 2.77 times less risky than JPMorgan Chase. It trades about 0.56 of its potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 12,885 in JPMorgan Chase Co on September 1, 2024 and sell it today you would earn a total of 2,143 from holding JPMorgan Chase Co or generate 16.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Electronic Arts vs. JPMorgan Chase Co
Performance |
| Timeline |
| Electronic Arts |
| JPMorgan Chase |
Electronic Arts and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and JPMorgan Chase
The main advantage of trading using opposite Electronic Arts and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, JPMorgan Chase 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 Chase will offset losses from the drop in JPMorgan Chase's long position.| Electronic Arts vs. Fras le SA | Electronic Arts vs. Energisa SA | Electronic Arts vs. Clave Indices De | Electronic Arts vs. BTG Pactual Logstica |
| JPMorgan Chase vs. Extra Space Storage | JPMorgan Chase vs. Fidelity National Information | JPMorgan Chase vs. Delta Air Lines | JPMorgan Chase vs. Automatic Data Processing |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |