Correlation Between JPMorgan Chase and Extendicare
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Extendicare 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 Extendicare 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 Extendicare, you can compare the effects of market volatilities on JPMorgan Chase and Extendicare 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 Extendicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Extendicare.
Diversification Opportunities for JPMorgan Chase and Extendicare
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Extendicare is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare 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 Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Extendicare go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Extendicare
Assuming the 90 days trading horizon JPMorgan Chase is expected to generate 7.95 times less return on investment than Extendicare. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.96 times less risky than Extendicare. It trades about 0.07 of its potential returns per unit of risk. Extendicare is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 944.00 in Extendicare on September 13, 2024 and sell it today you would earn a total of 118.00 from holding Extendicare or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Extendicare
Performance |
| Timeline |
| JPMorgan Chase |
| Extendicare |
JPMorgan Chase and Extendicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Extendicare
The main advantage of trading using opposite JPMorgan Chase and Extendicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Extendicare 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 Extendicare will offset losses from the drop in Extendicare's long position.| JPMorgan Chase vs. East Side Games | JPMorgan Chase vs. Gfl Environmental Holdings | JPMorgan Chase vs. Andlauer Healthcare Gr | JPMorgan Chase vs. Reliq Health Technologies |
| Extendicare vs. Sienna Senior Living | Extendicare vs. Chartwell Retirement Residences | Extendicare vs. Chemtrade Logistics Income | Extendicare vs. NorthWest Healthcare Properties |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |