Correlation Between JPMorgan Chase and GCT Semiconductor
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and GCT Semiconductor 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 GCT Semiconductor 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 GCT Semiconductor Holding, you can compare the effects of market volatilities on JPMorgan Chase and GCT Semiconductor 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 GCT Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and GCT Semiconductor.
Diversification Opportunities for JPMorgan Chase and GCT Semiconductor
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and GCT is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and GCT Semiconductor Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCT Semiconductor Holding 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 GCT Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCT Semiconductor Holding has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and GCT Semiconductor go up and down completely randomly.
Pair Corralation between JPMorgan Chase and GCT Semiconductor
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 9.2 times less return on investment than GCT Semiconductor. But when comparing it to its historical volatility, JPMorgan Chase Co is 30.48 times less risky than GCT Semiconductor. It trades about 0.14 of its potential returns per unit of risk. GCT Semiconductor Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,049 in GCT Semiconductor Holding on August 26, 2024 and sell it today you would lose (812.00) from holding GCT Semiconductor Holding or give up 77.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.08% |
| Values | Daily Returns |
JPMorgan Chase Co vs. GCT Semiconductor Holding
Performance |
| Timeline |
| JPMorgan Chase |
| GCT Semiconductor Holding |
JPMorgan Chase and GCT Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and GCT Semiconductor
The main advantage of trading using opposite JPMorgan Chase and GCT Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, GCT Semiconductor 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 GCT Semiconductor will offset losses from the drop in GCT Semiconductor's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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