Correlation Between JPMorgan Chase and Sun Life
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Sun Life 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 Sun Life 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 Sun Life Financial, you can compare the effects of market volatilities on JPMorgan Chase and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Sun Life.
Diversification Opportunities for JPMorgan Chase and Sun Life
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Sun is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Sun Life go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Sun Life
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 1.97 times more return on investment than Sun Life. However, JPMorgan Chase is 1.97 times more volatile than Sun Life Financial. It trades about 0.11 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.11 per unit of risk. If you would invest 2,220 in JPMorgan Chase Co on September 14, 2024 and sell it today you would earn a total of 994.00 from holding JPMorgan Chase Co or generate 44.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Sun Life Financial
Performance |
| Timeline |
| JPMorgan Chase |
| Sun Life Financial |
JPMorgan Chase and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Sun Life
The main advantage of trading using opposite JPMorgan Chase and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| JPMorgan Chase vs. NeuPath Health | JPMorgan Chase vs. Verizon Communications CDR | JPMorgan Chase vs. Jamieson Wellness | JPMorgan Chase vs. Nova Leap Health |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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