Correlation Between JPMorgan Chase and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Astronics Corp 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 Astronics Corp 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 Astronics Corp Cl, you can compare the effects of market volatilities on JPMorgan Chase and Astronics Corp 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 Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Astronics Corp.
Diversification Opportunities for JPMorgan Chase and Astronics Corp
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JPMorgan and Astronics is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl 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 Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Astronics Corp go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Astronics Corp
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.29 times more return on investment than Astronics Corp. However, JPMorgan Chase Co is 3.41 times less risky than Astronics Corp. It trades about 0.6 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.08 per unit of risk. If you would invest 23,877 in JPMorgan Chase Co on November 3, 2024 and sell it today you would earn a total of 2,853 from holding JPMorgan Chase Co or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Astronics Corp Cl
Performance |
| Timeline |
| JPMorgan Chase |
| Astronics Corp Cl |
JPMorgan Chase and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Astronics Corp
The main advantage of trading using opposite JPMorgan Chase and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Astronics Corp 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 Astronics Corp will offset losses from the drop in Astronics Corp's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Royal Bank of |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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