Correlation Between JPMorgan Chase and Kinaxis
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Kinaxis 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 Kinaxis 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 Kinaxis, you can compare the effects of market volatilities on JPMorgan Chase and Kinaxis 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 Kinaxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Kinaxis.
Diversification Opportunities for JPMorgan Chase and Kinaxis
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Kinaxis is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Kinaxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinaxis 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 Kinaxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinaxis has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Kinaxis go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Kinaxis
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 0.7 times more return on investment than Kinaxis. However, JPMorgan Chase Co is 1.43 times less risky than Kinaxis. It trades about 0.1 of its potential returns per unit of risk. Kinaxis is currently generating about 0.03 per unit of risk. If you would invest 1,718 in JPMorgan Chase Co on September 14, 2024 and sell it today you would earn a total of 1,496 from holding JPMorgan Chase Co or generate 87.08% 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. Kinaxis
Performance |
| Timeline |
| JPMorgan Chase |
| Kinaxis |
JPMorgan Chase and Kinaxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Kinaxis
The main advantage of trading using opposite JPMorgan Chase and Kinaxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Kinaxis 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 Kinaxis will offset losses from the drop in Kinaxis' long position.| JPMorgan Chase vs. NeuPath Health | JPMorgan Chase vs. Verizon Communications CDR | JPMorgan Chase vs. Jamieson Wellness | JPMorgan Chase vs. Nova Leap Health |
| Kinaxis vs. Open Text Corp | Kinaxis vs. Enghouse Systems | Kinaxis vs. Docebo Inc | Kinaxis vs. Descartes Systems Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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