Correlation Between JPMorgan Chase and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Lomiko Metals 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 Lomiko Metals 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 Lomiko Metals, you can compare the effects of market volatilities on JPMorgan Chase and Lomiko Metals 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 Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Lomiko Metals.
Diversification Opportunities for JPMorgan Chase and Lomiko Metals
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Lomiko is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko Metals 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 Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Lomiko Metals go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Lomiko Metals
Assuming the 90 days trading horizon JPMorgan Chase is expected to generate 4.42 times less return on investment than Lomiko Metals. But when comparing it to its historical volatility, JPMorgan Chase Co is 9.07 times less risky than Lomiko Metals. It trades about 0.1 of its potential returns per unit of risk. Lomiko Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Lomiko Metals on September 3, 2024 and sell it today you would lose (12.00) from holding Lomiko Metals or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Lomiko Metals
Performance |
| Timeline |
| JPMorgan Chase |
| Lomiko Metals |
JPMorgan Chase and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Lomiko Metals
The main advantage of trading using opposite JPMorgan Chase and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Lomiko Metals 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| JPMorgan Chase vs. Intact Financial Corp | JPMorgan Chase vs. Primaris Retail RE | JPMorgan Chase vs. Plaza Retail REIT | JPMorgan Chase vs. Financial 15 Split |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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