Correlation Between JPMorgan Chase and Freedom Acquisition
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Freedom Acquisition 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 Freedom Acquisition 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 Freedom Acquisition I, you can compare the effects of market volatilities on JPMorgan Chase and Freedom Acquisition 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 Freedom Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Freedom Acquisition.
Diversification Opportunities for JPMorgan Chase and Freedom Acquisition
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Freedom is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Freedom Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Acquisition 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 Freedom Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Acquisition has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Freedom Acquisition go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Freedom Acquisition
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 | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Freedom Acquisition I
Performance |
| Timeline |
| JPMorgan Chase |
| Freedom Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Freedom Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Freedom Acquisition
The main advantage of trading using opposite JPMorgan Chase and Freedom Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Freedom Acquisition 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 Freedom Acquisition will offset losses from the drop in Freedom Acquisition's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Freedom Acquisition vs. Everest Consolidator Acquisition | Freedom Acquisition vs. Valuence Merger Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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