Correlation Between JPMorgan Chase and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Senmiao Technology 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 Senmiao Technology 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 Senmiao Technology, you can compare the effects of market volatilities on JPMorgan Chase and Senmiao Technology 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 Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Senmiao Technology.
Diversification Opportunities for JPMorgan Chase and Senmiao Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Senmiao is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology 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 Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Senmiao Technology go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Senmiao Technology
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.21 times more return on investment than Senmiao Technology. However, JPMorgan Chase Co is 4.77 times less risky than Senmiao Technology. It trades about 0.08 of its potential returns per unit of risk. Senmiao Technology is currently generating about -0.09 per unit of risk. If you would invest 23,929 in JPMorgan Chase Co on September 12, 2024 and sell it today you would earn a total of 357.00 from holding JPMorgan Chase Co or generate 1.49% 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. Senmiao Technology
Performance |
| Timeline |
| JPMorgan Chase |
| Senmiao Technology |
JPMorgan Chase and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Senmiao Technology
The main advantage of trading using opposite JPMorgan Chase and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Senmiao Technology 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 Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.| JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. Victory Integrity Smallmid Cap | JPMorgan Chase vs. Hilton Worldwide Holdings | JPMorgan Chase vs. NVIDIA |
| Senmiao Technology vs. Victory Integrity Smallmid Cap | Senmiao Technology vs. Hilton Worldwide Holdings | Senmiao Technology vs. NVIDIA | Senmiao Technology vs. JPMorgan Chase Co |
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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