Correlation Between JPMorgan Chase and American Shipping
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and American Shipping 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 American Shipping 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 American Shipping, you can compare the effects of market volatilities on JPMorgan Chase and American Shipping 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 American Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and American Shipping.
Diversification Opportunities for JPMorgan Chase and American Shipping
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and American is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and American Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shipping 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 American Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shipping has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and American Shipping go up and down completely randomly.
Pair Corralation between JPMorgan Chase and American Shipping
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.06 times more return on investment than American Shipping. However, JPMorgan Chase is 2.06 times more volatile than American Shipping. It trades about 0.21 of its potential returns per unit of risk. American Shipping is currently generating about -0.25 per unit of risk. If you would invest 22,192 in JPMorgan Chase Co on September 1, 2024 and sell it today you would earn a total of 2,780 from holding JPMorgan Chase Co or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. American Shipping
Performance |
| Timeline |
| JPMorgan Chase |
| American Shipping |
JPMorgan Chase and American Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and American Shipping
The main advantage of trading using opposite JPMorgan Chase and American Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, American Shipping 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 American Shipping will offset losses from the drop in American Shipping's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| American Shipping vs. Hapag Lloyd Aktiengesellschaft | American Shipping vs. AP Moeller Maersk AS | American Shipping vs. AP Mller | American Shipping vs. COSCO SHIPPING 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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