Correlation Between JPMorgan Chase and Amphenol
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Amphenol 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 Amphenol 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 Amphenol, you can compare the effects of market volatilities on JPMorgan Chase and Amphenol 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 Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Amphenol.
Diversification Opportunities for JPMorgan Chase and Amphenol
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Amphenol is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol 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 Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Amphenol go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Amphenol
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.66 times more return on investment than Amphenol. However, JPMorgan Chase is 1.66 times more volatile than Amphenol. It trades about 0.19 of its potential returns per unit of risk. Amphenol is currently generating about 0.18 per unit of risk. If you would invest 22,441 in JPMorgan Chase Co on August 31, 2024 and sell it today you would earn a total of 2,538 from holding JPMorgan Chase Co or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Amphenol
Performance |
| Timeline |
| JPMorgan Chase |
| Amphenol |
JPMorgan Chase and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Amphenol
The main advantage of trading using opposite JPMorgan Chase and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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