Correlation Between JPMorgan Chase and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Innovator ETFs 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 Innovator ETFs 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 Innovator ETFs Trust, you can compare the effects of market volatilities on JPMorgan Chase and Innovator ETFs 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 Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Innovator ETFs.
Diversification Opportunities for JPMorgan Chase and Innovator ETFs
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JPMorgan and Innovator is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust 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 Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Innovator ETFs go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Innovator ETFs
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 6.59 times more return on investment than Innovator ETFs. However, JPMorgan Chase is 6.59 times more volatile than Innovator ETFs Trust. It trades about 0.68 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.3 per unit of risk. If you would invest 24,313 in JPMorgan Chase Co on November 9, 2024 and sell it today you would earn a total of 3,377 from holding JPMorgan Chase Co or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Innovator ETFs Trust
Performance |
| Timeline |
| JPMorgan Chase |
| Innovator ETFs Trust |
JPMorgan Chase and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Innovator ETFs
The main advantage of trading using opposite JPMorgan Chase and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Innovator ETFs vs. FT Vest Equity | Innovator ETFs vs. Northern Lights | Innovator ETFs vs. Dimensional International High | Innovator ETFs vs. First Trust Exchange Traded |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |