Correlation Between JPMorgan Chase and Grupo Simec
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Grupo Simec 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 JPMorgan Chase and Grupo Simec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and Grupo Simec SAB, you can compare the effects of market volatilities on JPMorgan Chase and Grupo Simec 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 JPMorgan Chase with a short position of Grupo Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Grupo Simec.
Diversification Opportunities for JPMorgan Chase and Grupo Simec
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPMorgan and Grupo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB and JPMorgan Chase 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 JPMorgan Chase Co are associated (or correlated) with Grupo Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Grupo Simec go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Grupo Simec
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 1.41 times more return on investment than Grupo Simec. However, JPMorgan Chase is 1.41 times more volatile than Grupo Simec SAB. It trades about 0.13 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.02 per unit of risk. If you would invest 255,767 in JPMorgan Chase Co on September 12, 2024 and sell it today you would earn a total of 235,733 from holding JPMorgan Chase Co or generate 92.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Grupo Simec SAB
Performance |
| Timeline |
| JPMorgan Chase |
| Grupo Simec SAB |
JPMorgan Chase and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Grupo Simec
The main advantage of trading using opposite JPMorgan Chase and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Grupo Simec 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 Grupo Simec will offset losses from the drop in Grupo Simec's long position.| JPMorgan Chase vs. Verizon Communications | JPMorgan Chase vs. Samsung Electronics Co | JPMorgan Chase vs. Applied Materials | JPMorgan Chase vs. Prudential Financial |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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