Correlation Between JPMorgan Chase and Nicola Mining
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Nicola Mining 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 Nicola Mining 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 Nicola Mining, you can compare the effects of market volatilities on JPMorgan Chase and Nicola Mining 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 Nicola Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Nicola Mining.
Diversification Opportunities for JPMorgan Chase and Nicola Mining
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Nicola is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Nicola Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicola Mining 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 Nicola Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicola Mining has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Nicola Mining go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Nicola Mining
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 0.96 times more return on investment than Nicola Mining. However, JPMorgan Chase Co is 1.04 times less risky than Nicola Mining. It trades about 0.19 of its potential returns per unit of risk. Nicola Mining is currently generating about -0.15 per unit of risk. If you would invest 3,000 in JPMorgan Chase Co on August 27, 2024 and sell it today you would earn a total of 332.00 from holding JPMorgan Chase Co or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Nicola Mining
Performance |
| Timeline |
| JPMorgan Chase |
| Nicola Mining |
JPMorgan Chase and Nicola Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Nicola Mining
The main advantage of trading using opposite JPMorgan Chase and Nicola Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Nicola Mining 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 Nicola Mining will offset losses from the drop in Nicola Mining's long position.| JPMorgan Chase vs. DelphX Capital Markets | JPMorgan Chase vs. Citadel Income | JPMorgan Chase vs. iShares Canadian HYBrid | JPMorgan Chase vs. Altagas Cum Red |
| Nicola Mining vs. Kingsmen Resources | Nicola Mining vs. Gunpoint Exploration | Nicola Mining vs. Themac Resources Group | Nicola Mining vs. Magna Terra Minerals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |