Correlation Between DAX Index and JPMorgan Chase
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By analyzing existing cross correlation between DAX Index and JPMorgan Chase Co, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and JPMorgan Chase.
Diversification Opportunities for DAX Index and JPMorgan Chase
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and JPMorgan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and JPMorgan Chase go up and down completely randomly.
Pair Corralation between DAX Index and JPMorgan Chase
Assuming the 90 days trading horizon DAX Index is expected to under-perform the JPMorgan Chase. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.07 times less risky than JPMorgan Chase. The index trades about -0.03 of its potential returns per unit of risk. The JPMorgan Chase Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 20,665 in JPMorgan Chase Co on August 25, 2024 and sell it today you would earn a total of 3,175 from holding JPMorgan Chase Co or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. JPMorgan Chase Co
Performance |
| Timeline |
DAX Index and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
JPMorgan Chase Co
Pair trading matchups for JPMorgan Chase
Pair Trading with DAX Index and JPMorgan Chase
The main advantage of trading using opposite DAX Index and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| JPMorgan Chase vs. G8 EDUCATION | JPMorgan Chase vs. GREENX METALS LTD | JPMorgan Chase vs. CAREER EDUCATION | JPMorgan Chase vs. DeVry Education Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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