Correlation Between JPMorgan Chase and Frontier Lithium
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Frontier Lithium 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 Frontier Lithium 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 Frontier Lithium, you can compare the effects of market volatilities on JPMorgan Chase and Frontier Lithium 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 Frontier Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Frontier Lithium.
Diversification Opportunities for JPMorgan Chase and Frontier Lithium
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Frontier is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Frontier Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Lithium 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 Frontier Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Lithium has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Frontier Lithium go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Frontier Lithium
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 0.93 times more return on investment than Frontier Lithium. However, JPMorgan Chase Co is 1.08 times less risky than Frontier Lithium. It trades about 0.15 of its potential returns per unit of risk. Frontier Lithium is currently generating about -0.14 per unit of risk. If you would invest 2,975 in JPMorgan Chase Co on August 24, 2024 and sell it today you would earn a total of 281.00 from holding JPMorgan Chase Co or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Frontier Lithium
Performance |
| Timeline |
| JPMorgan Chase |
| Frontier Lithium |
JPMorgan Chase and Frontier Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Frontier Lithium
The main advantage of trading using opposite JPMorgan Chase and Frontier Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Frontier Lithium 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 Frontier Lithium will offset losses from the drop in Frontier Lithium's long position.| JPMorgan Chase vs. CVW CleanTech | JPMorgan Chase vs. Northstar Clean Technologies | JPMorgan Chase vs. Quorum Information Technologies | JPMorgan Chase vs. Endeavour Silver Corp |
| Frontier Lithium vs. Critical Elements | Frontier Lithium vs. Rock Tech Lithium | Frontier Lithium vs. American Lithium Corp | Frontier Lithium vs. American Manganese |
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
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| 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 | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |