Correlation Between JPMorgan Chase and Bonso Electronics
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Bonso Electronics 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 Bonso Electronics 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 Bonso Electronics International, you can compare the effects of market volatilities on JPMorgan Chase and Bonso Electronics 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 Bonso Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Bonso Electronics.
Diversification Opportunities for JPMorgan Chase and Bonso Electronics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Bonso is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Bonso Electronics Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonso Electronics 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 Bonso Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonso Electronics has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Bonso Electronics go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Bonso Electronics
If you would invest 22,294 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 2,678 from holding JPMorgan Chase Co or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Bonso Electronics Internationa
Performance |
| Timeline |
| JPMorgan Chase |
| Bonso Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Bonso Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Bonso Electronics
The main advantage of trading using opposite JPMorgan Chase and Bonso Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Bonso Electronics 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 Bonso Electronics will offset losses from the drop in Bonso Electronics' long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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