Correlation Between JPMorgan Chase and Ambase Corp
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Ambase Corp 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 Ambase Corp 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 Ambase Corp, you can compare the effects of market volatilities on JPMorgan Chase and Ambase Corp 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 Ambase Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Ambase Corp.
Diversification Opportunities for JPMorgan Chase and Ambase Corp
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Ambase is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Ambase Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambase Corp 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 Ambase Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambase Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Ambase Corp go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Ambase Corp
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.79 times more return on investment than Ambase Corp. However, JPMorgan Chase Co is 1.26 times less risky than Ambase Corp. It trades about 0.17 of its potential returns per unit of risk. Ambase Corp is currently generating about -0.06 per unit of risk. If you would invest 22,498 in JPMorgan Chase Co on August 25, 2024 and sell it today you would earn a total of 2,357 from holding JPMorgan Chase Co or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Ambase Corp
Performance |
| Timeline |
| JPMorgan Chase |
| Ambase Corp |
JPMorgan Chase and Ambase Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Ambase Corp
The main advantage of trading using opposite JPMorgan Chase and Ambase Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Ambase Corp 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 Ambase Corp will offset losses from the drop in Ambase Corp's long position.| JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Canadian Imperial Bank |
| Ambase Corp vs. Adler Group SA | Ambase Corp vs. Aztec Land Comb | Ambase Corp vs. Bridgemarq Real Estate | Ambase Corp vs. Agritek Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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