Correlation Between JPMorgan Chase and Agfa-Gevaert
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Agfa-Gevaert 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 Agfa-Gevaert 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 Agfa Gevaert NV, you can compare the effects of market volatilities on JPMorgan Chase and Agfa-Gevaert 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 Agfa-Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Agfa-Gevaert.
Diversification Opportunities for JPMorgan Chase and Agfa-Gevaert
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Agfa-Gevaert is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Agfa Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agfa Gevaert NV 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 Agfa-Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agfa Gevaert NV has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Agfa-Gevaert go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Agfa-Gevaert
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.51 times more return on investment than Agfa-Gevaert. However, JPMorgan Chase Co is 1.98 times less risky than Agfa-Gevaert. It trades about 0.12 of its potential returns per unit of risk. Agfa Gevaert NV is currently generating about -0.1 per unit of risk. If you would invest 18,978 in JPMorgan Chase Co on September 3, 2024 and sell it today you would earn a total of 5,994 from holding JPMorgan Chase Co or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Agfa Gevaert NV
Performance |
| Timeline |
| JPMorgan Chase |
| Agfa Gevaert NV |
JPMorgan Chase and Agfa-Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Agfa-Gevaert
The main advantage of trading using opposite JPMorgan Chase and Agfa-Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Agfa-Gevaert 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 Agfa-Gevaert will offset losses from the drop in Agfa-Gevaert's long position.| JPMorgan Chase vs. Partner Communications | JPMorgan Chase vs. Merck Company | JPMorgan Chase vs. Western Midstream Partners | JPMorgan Chase vs. Edgewise Therapeutics |
| Agfa-Gevaert vs. Enerpac Tool Group | Agfa-Gevaert vs. Omega Flex | Agfa-Gevaert vs. Luxfer Holdings PLC | Agfa-Gevaert vs. Gorman Rupp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |