Correlation Between JPMorgan Chase and Hampton Financial
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Hampton Financial 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 Hampton Financial 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 Hampton Financial Corp, you can compare the effects of market volatilities on JPMorgan Chase and Hampton Financial 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 Hampton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Hampton Financial.
Diversification Opportunities for JPMorgan Chase and Hampton Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Hampton is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Hampton Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hampton Financial Corp 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 Hampton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hampton Financial Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Hampton Financial go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Hampton Financial
Assuming the 90 days trading horizon JPMorgan Chase is expected to generate 4.42 times less return on investment than Hampton Financial. But when comparing it to its historical volatility, JPMorgan Chase Co is 2.44 times less risky than Hampton Financial. It trades about 0.08 of its potential returns per unit of risk. Hampton Financial Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 41.00 in Hampton Financial Corp on October 12, 2024 and sell it today you would earn a total of 3.00 from holding Hampton Financial Corp or generate 7.32% 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. Hampton Financial Corp
Performance |
| Timeline |
| JPMorgan Chase |
| Hampton Financial Corp |
JPMorgan Chase and Hampton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Hampton Financial
The main advantage of trading using opposite JPMorgan Chase and Hampton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Hampton Financial 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 Hampton Financial will offset losses from the drop in Hampton Financial's long position.| JPMorgan Chase vs. CVW CleanTech | JPMorgan Chase vs. Earth Alive Clean | JPMorgan Chase vs. Upstart Investments | JPMorgan Chase vs. Champion Gaming Group |
| Hampton Financial vs. JPMorgan Chase Co | Hampton Financial vs. Bank of America | Hampton Financial vs. Toronto Dominion Bank | Hampton Financial vs. Royal Bank of |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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