Correlation Between JPMorgan Chase and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Amplify Cash 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 Amplify Cash 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 Amplify Cash Flow, you can compare the effects of market volatilities on JPMorgan Chase and Amplify Cash 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 Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Amplify Cash.
Diversification Opportunities for JPMorgan Chase and Amplify Cash
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Amplify is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow 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 Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Amplify Cash go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Amplify Cash
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.33 times more return on investment than Amplify Cash. However, JPMorgan Chase is 1.33 times more volatile than Amplify Cash Flow. It trades about 0.13 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.07 per unit of risk. If you would invest 13,577 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 11,395 from holding JPMorgan Chase Co or generate 83.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Amplify Cash Flow
Performance |
| Timeline |
| JPMorgan Chase |
| Amplify Cash Flow |
JPMorgan Chase and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Amplify Cash
The main advantage of trading using opposite JPMorgan Chase and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Amplify Cash 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 Amplify Cash will offset losses from the drop in Amplify Cash's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
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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