Correlation Between JPMorgan Chase and Axcella Health
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Axcella Health 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 Axcella Health 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 Axcella Health, you can compare the effects of market volatilities on JPMorgan Chase and Axcella Health 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 Axcella Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Axcella Health.
Diversification Opportunities for JPMorgan Chase and Axcella Health
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Axcella is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Axcella Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcella Health 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 Axcella Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcella Health has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Axcella Health go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Axcella Health
If you would invest 22,550 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 2,447 from holding JPMorgan Chase Co or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Axcella Health
Performance |
| Timeline |
| JPMorgan Chase |
| Axcella Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Axcella Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Axcella Health
The main advantage of trading using opposite JPMorgan Chase and Axcella Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Axcella Health 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 Axcella Health will offset losses from the drop in Axcella Health's long position.The idea behind JPMorgan Chase Co and Axcella Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Axcella Health vs. Cyclerion Therapeutics | Axcella Health vs. Kezar Life Sciences | Axcella Health vs. CytomX Therapeutics | Axcella Health vs. Assembly Biosciences |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |