Correlation Between JPMorgan Chase and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Immatics Biotechnologies 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 Immatics Biotechnologies 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 immatics biotechnologies GmbH, you can compare the effects of market volatilities on JPMorgan Chase and Immatics Biotechnologies 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 Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Immatics Biotechnologies.
Diversification Opportunities for JPMorgan Chase and Immatics Biotechnologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Immatics is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies 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 Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Immatics Biotechnologies
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.36 times more return on investment than Immatics Biotechnologies. However, JPMorgan Chase Co is 2.8 times less risky than Immatics Biotechnologies. It trades about 0.18 of its potential returns per unit of risk. immatics biotechnologies GmbH is currently generating about -0.63 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 2,447 from holding JPMorgan Chase Co or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
JPMorgan Chase Co vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| JPMorgan Chase |
| Immatics Biotechnologies |
JPMorgan Chase and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Immatics Biotechnologies
The main advantage of trading using opposite JPMorgan Chase and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Immatics Biotechnologies 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 Immatics Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.The idea behind JPMorgan Chase Co and immatics biotechnologies GmbH 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.| Immatics Biotechnologies vs. Eliem Therapeutics | Immatics Biotechnologies vs. Scpharmaceuticals | Immatics Biotechnologies vs. Milestone Pharmaceuticals | Immatics Biotechnologies vs. Seres Therapeutics |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |