Correlation Between JPMorgan Chase and Equitrans Midstream
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Equitrans Midstream 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 Equitrans Midstream 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 Equitrans Midstream Corp, you can compare the effects of market volatilities on JPMorgan Chase and Equitrans Midstream 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 Equitrans Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Equitrans Midstream.
Diversification Opportunities for JPMorgan Chase and Equitrans Midstream
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Equitrans is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Equitrans Midstream Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitrans Midstream Corp 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 Equitrans Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitrans Midstream Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Equitrans Midstream go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Equitrans Midstream
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.96 times more return on investment than Equitrans Midstream. However, JPMorgan Chase Co is 1.04 times less risky than Equitrans Midstream. It trades about 0.14 of its potential returns per unit of risk. Equitrans Midstream Corp is currently generating about 0.12 per unit of risk. If you would invest 15,313 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 9,659 from holding JPMorgan Chase Co or generate 63.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Equitrans Midstream Corp
Performance |
| Timeline |
| JPMorgan Chase |
| Equitrans Midstream Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Equitrans Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Equitrans Midstream
The main advantage of trading using opposite JPMorgan Chase and Equitrans Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Equitrans Midstream 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 Equitrans Midstream will offset losses from the drop in Equitrans Midstream's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Equitrans Midstream vs. MPLX LP | Equitrans Midstream vs. Plains All American | Equitrans Midstream vs. Hess Midstream Partners | Equitrans Midstream vs. Plains GP 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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