Correlation Between JPMorgan Chase and Harmonic
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Harmonic 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 Harmonic 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 Harmonic, you can compare the effects of market volatilities on JPMorgan Chase and Harmonic 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 Harmonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Harmonic.
Diversification Opportunities for JPMorgan Chase and Harmonic
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Harmonic is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic 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 Harmonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmonic has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Harmonic go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Harmonic
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.26 times more return on investment than Harmonic. However, JPMorgan Chase is 1.26 times more volatile than Harmonic. It trades about 0.19 of its potential returns per unit of risk. Harmonic is currently generating about 0.18 per unit of risk. If you would invest 22,441 in JPMorgan Chase Co on August 31, 2024 and sell it today you would earn a total of 2,538 from holding JPMorgan Chase Co or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Harmonic
Performance |
| Timeline |
| JPMorgan Chase |
| Harmonic |
JPMorgan Chase and Harmonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Harmonic
The main advantage of trading using opposite JPMorgan Chase and Harmonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Harmonic 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 Harmonic will offset losses from the drop in Harmonic's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Harmonic vs. NETGEAR | Harmonic vs. Juniper Networks | Harmonic vs. Digi International | Harmonic vs. Clearfield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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