Correlation Between JPMorgan Chase and Stingray
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on JPMorgan Chase and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Stingray.
Diversification Opportunities for JPMorgan Chase and Stingray
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Stingray is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Stingray go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Stingray
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to under-perform the Stingray. But the stock apears to be less risky and, when comparing its historical volatility, JPMorgan Chase Co is 1.88 times less risky than Stingray. The stock trades about -0.06 of its potential returns per unit of risk. The Stingray Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 803.00 in Stingray Group on November 27, 2024 and sell it today you would earn a total of 97.00 from holding Stingray Group or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Stingray Group
Performance |
| Timeline |
| JPMorgan Chase |
| Stingray Group |
JPMorgan Chase and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Stingray
The main advantage of trading using opposite JPMorgan Chase and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| JPMorgan Chase vs. Perseus Mining | JPMorgan Chase vs. Royal Road Minerals | JPMorgan Chase vs. Major Drilling Group | JPMorgan Chase vs. Pace Metals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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