Correlation Between JPMorgan Chase and KraneShares Asia
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and KraneShares Asia 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 KraneShares Asia 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 KraneShares Asia Pacific, you can compare the effects of market volatilities on JPMorgan Chase and KraneShares Asia 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 KraneShares Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and KraneShares Asia.
Diversification Opportunities for JPMorgan Chase and KraneShares Asia
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and KraneShares is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and KraneShares Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Asia Pacific 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 KraneShares Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Asia Pacific has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and KraneShares Asia go up and down completely randomly.
Pair Corralation between JPMorgan Chase and KraneShares Asia
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 6.69 times more return on investment than KraneShares Asia. However, JPMorgan Chase is 6.69 times more volatile than KraneShares Asia Pacific. It trades about 0.13 of its potential returns per unit of risk. KraneShares Asia Pacific is currently generating about 0.23 per unit of risk. If you would invest 15,539 in JPMorgan Chase Co on September 4, 2024 and sell it today you would earn a total of 8,943 from holding JPMorgan Chase Co or generate 57.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. KraneShares Asia Pacific
Performance |
| Timeline |
| JPMorgan Chase |
| KraneShares Asia Pacific |
JPMorgan Chase and KraneShares Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and KraneShares Asia
The main advantage of trading using opposite JPMorgan Chase and KraneShares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, KraneShares Asia 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 KraneShares Asia will offset losses from the drop in KraneShares Asia's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Aquagold International | JPMorgan Chase vs. Thrivent High Yield | JPMorgan Chase vs. Morningstar Unconstrained Allocation |
| KraneShares Asia vs. iShares iBoxx Investment | KraneShares Asia vs. iShares iBoxx High | KraneShares Asia vs. iShares National Muni | KraneShares Asia vs. Invesco Emerging Markets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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