Correlation Between JPMorgan Chase and Lucy Scientific
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Lucy Scientific 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 Lucy Scientific 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 Lucy Scientific Discovery, you can compare the effects of market volatilities on JPMorgan Chase and Lucy Scientific 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 Lucy Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Lucy Scientific.
Diversification Opportunities for JPMorgan Chase and Lucy Scientific
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Lucy is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Lucy Scientific Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucy Scientific Discovery 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 Lucy Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucy Scientific Discovery has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Lucy Scientific go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Lucy Scientific
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 59.78 times less return on investment than Lucy Scientific. But when comparing it to its historical volatility, JPMorgan Chase Co is 80.5 times less risky than Lucy Scientific. It trades about 0.13 of its potential returns per unit of risk. Lucy Scientific Discovery is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Lucy Scientific Discovery on August 31, 2024 and sell it today you would lose (1,138) from holding Lucy Scientific Discovery or give up 99.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.16% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Lucy Scientific Discovery
Performance |
| Timeline |
| JPMorgan Chase |
| Lucy Scientific Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Lucy Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Lucy Scientific
The main advantage of trading using opposite JPMorgan Chase and Lucy Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Lucy Scientific 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 Lucy Scientific will offset losses from the drop in Lucy Scientific's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Lucy Scientific vs. Shuttle Pharmaceuticals | Lucy Scientific vs. Lifecore Biomedical | Lucy Scientific vs. Journey Medical Corp | Lucy Scientific vs. Akanda Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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