Correlation Between JPMorgan Chase and Grande Portage

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Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Grande Portage 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 Grande Portage 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 Grande Portage Resources, you can compare the effects of market volatilities on JPMorgan Chase and Grande Portage 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 Grande Portage. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Grande Portage.

Diversification Opportunities for JPMorgan Chase and Grande Portage

JPMorganGrandeDiversified AwayJPMorganGrandeDiversified Away100%
-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between JPMorgan and Grande is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Grande Portage Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Portage Resources 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 Grande Portage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Portage Resources has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Grande Portage go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Grande Portage

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.58 times less return on investment than Grande Portage. But when comparing it to its historical volatility, JPMorgan Chase Co is 5.02 times less risky than Grande Portage. It trades about 0.11 of its potential returns per unit of risk. Grande Portage Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Grande Portage Resources on November 26, 2024 and sell it today you would earn a total of  0.00  from holding Grande Portage Resources or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

JPMorgan Chase Co  vs.  Grande Portage Resources

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15JPM GPTRF
       Timeline  
JPMorgan Chase 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, JPMorgan Chase is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb230240250260270280
Grande Portage Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Grande Portage Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Grande Portage is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.110.120.130.140.150.160.17

JPMorgan Chase and Grande Portage Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.7-2.77-1.84-0.91-0.01550.961.942.933.924.91 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15JPM GPTRF
       Returns  

Pair Trading with JPMorgan Chase and Grande Portage

The main advantage of trading using opposite JPMorgan Chase and Grande Portage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Grande Portage 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 Grande Portage will offset losses from the drop in Grande Portage's long position.
The idea behind JPMorgan Chase Co and Grande Portage Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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