Correlation Between JPMorgan Chase and Celestica
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Celestica 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 Celestica 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 Celestica, you can compare the effects of market volatilities on JPMorgan Chase and Celestica 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 Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Celestica.
Diversification Opportunities for JPMorgan Chase and Celestica
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Celestica is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica 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 Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Celestica go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Celestica
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 3.44 times less return on investment than Celestica. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.98 times less risky than Celestica. It trades about 0.11 of its potential returns per unit of risk. Celestica is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Celestica on August 27, 2024 and sell it today you would earn a total of 3,916 from holding Celestica or generate 78.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Celestica
Performance |
| Timeline |
| JPMorgan Chase |
| Celestica |
JPMorgan Chase and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Celestica
The main advantage of trading using opposite JPMorgan Chase and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal | JPMorgan Chase vs. Bank of Nova |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |