Correlation Between JPMorgan Chase and IShares Europe
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and IShares Europe 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 IShares Europe 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 iShares Europe ETF, you can compare the effects of market volatilities on JPMorgan Chase and IShares Europe 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 IShares Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and IShares Europe.
Diversification Opportunities for JPMorgan Chase and IShares Europe
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and IShares is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and iShares Europe ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Europe ETF 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 IShares Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Europe ETF has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and IShares Europe go up and down completely randomly.
Pair Corralation between JPMorgan Chase and IShares Europe
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.13 times more return on investment than IShares Europe. However, JPMorgan Chase is 3.13 times more volatile than iShares Europe ETF. It trades about 0.19 of its potential returns per unit of risk. iShares Europe ETF is currently generating about -0.29 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 28, 2024 and sell it today you would earn a total of 2,479 from holding JPMorgan Chase Co or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. iShares Europe ETF
Performance |
| Timeline |
| JPMorgan Chase |
| iShares Europe ETF |
JPMorgan Chase and IShares Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and IShares Europe
The main advantage of trading using opposite JPMorgan Chase and IShares Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, IShares Europe 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 IShares Europe will offset losses from the drop in IShares Europe's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal | JPMorgan Chase vs. Bank of Nova |
| IShares Europe vs. WisdomTree International Hedged | IShares Europe vs. WisdomTree Emerging Markets | IShares Europe vs. WisdomTree Dynamic Currency |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |