Correlation Between JPMorgan Chase and CCL Industries
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and CCL Industries 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 CCL Industries 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 CCL Industries, you can compare the effects of market volatilities on JPMorgan Chase and CCL Industries 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 CCL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and CCL Industries.
Diversification Opportunities for JPMorgan Chase and CCL Industries
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and CCL is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and CCL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Industries 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 CCL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Industries has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and CCL Industries go up and down completely randomly.
Pair Corralation between JPMorgan Chase and CCL Industries
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 1.03 times more return on investment than CCL Industries. However, JPMorgan Chase is 1.03 times more volatile than CCL Industries. It trades about 0.44 of its potential returns per unit of risk. CCL Industries is currently generating about -0.07 per unit of risk. If you would invest 3,172 in JPMorgan Chase Co on November 2, 2024 and sell it today you would earn a total of 374.00 from holding JPMorgan Chase Co or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. CCL Industries
Performance |
| Timeline |
| JPMorgan Chase |
| CCL Industries |
JPMorgan Chase and CCL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and CCL Industries
The main advantage of trading using opposite JPMorgan Chase and CCL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, CCL Industries 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 CCL Industries will offset losses from the drop in CCL Industries' long position.| JPMorgan Chase vs. Andean Precious Metals | JPMorgan Chase vs. Precious Metals And | JPMorgan Chase vs. iA Financial | JPMorgan Chase vs. Income Financial Trust |
| CCL Industries vs. Stella Jones | CCL Industries vs. Gildan Activewear | CCL Industries vs. Toromont Industries | CCL Industries vs. Waste Connections |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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