Correlation Between JPMorgan Chase and Anika Therapeutics
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Anika Therapeutics 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 Anika Therapeutics 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 Anika Therapeutics, you can compare the effects of market volatilities on JPMorgan Chase and Anika Therapeutics 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 Anika Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Anika Therapeutics.
Diversification Opportunities for JPMorgan Chase and Anika Therapeutics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Anika is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Anika Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anika Therapeutics 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 Anika Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anika Therapeutics has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Anika Therapeutics go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Anika Therapeutics
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.52 times more return on investment than Anika Therapeutics. However, JPMorgan Chase Co is 1.94 times less risky than Anika Therapeutics. It trades about 0.13 of its potential returns per unit of risk. Anika Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 13,551 in JPMorgan Chase Co on August 31, 2024 and sell it today you would earn a total of 11,421 from holding JPMorgan Chase Co or generate 84.28% 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. Anika Therapeutics
Performance |
| Timeline |
| JPMorgan Chase |
| Anika Therapeutics |
JPMorgan Chase and Anika Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Anika Therapeutics
The main advantage of trading using opposite JPMorgan Chase and Anika Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Anika Therapeutics 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 Anika Therapeutics will offset losses from the drop in Anika Therapeutics' long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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