Correlation Between JPMorgan Chase and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Stone Ridge 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 Stone Ridge 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 Stone Ridge 2063, you can compare the effects of market volatilities on JPMorgan Chase and Stone Ridge 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 Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Stone Ridge.
Diversification Opportunities for JPMorgan Chase and Stone Ridge
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Stone is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Stone Ridge 2063 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge 2063 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 Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge 2063 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Stone Ridge go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Stone Ridge
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.21 times more return on investment than Stone Ridge. However, JPMorgan Chase is 2.21 times more volatile than Stone Ridge 2063. It trades about 0.16 of its potential returns per unit of risk. Stone Ridge 2063 is currently generating about -0.13 per unit of risk. If you would invest 14,072 in JPMorgan Chase Co on September 1, 2024 and sell it today you would earn a total of 10,900 from holding JPMorgan Chase Co or generate 77.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 20.07% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Stone Ridge 2063
Performance |
| Timeline |
| JPMorgan Chase |
| Stone Ridge 2063 |
JPMorgan Chase and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Stone Ridge
The main advantage of trading using opposite JPMorgan Chase and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Stone Ridge vs. Proshares Russell 2000 | Stone Ridge vs. Tidal Trust II | Stone Ridge vs. PIMCO Mortgage Backed Securities | Stone Ridge vs. iShares Trust |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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