Correlation Between JPMorgan Chase and Lumen Technologies
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Lumen Technologies 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 Lumen Technologies 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 Lumen Technologies, you can compare the effects of market volatilities on JPMorgan Chase and Lumen Technologies 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 Lumen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Lumen Technologies.
Diversification Opportunities for JPMorgan Chase and Lumen Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and Lumen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Lumen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies 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 Lumen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Lumen Technologies go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Lumen Technologies
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.25 times more return on investment than Lumen Technologies. However, JPMorgan Chase Co is 4.02 times less risky than Lumen Technologies. It trades about 0.08 of its potential returns per unit of risk. Lumen Technologies is currently generating about -0.59 per unit of risk. If you would invest 23,929 in JPMorgan Chase Co on September 12, 2024 and sell it today you would earn a total of 357.00 from holding JPMorgan Chase Co or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Lumen Technologies
Performance |
| Timeline |
| JPMorgan Chase |
| Lumen Technologies |
JPMorgan Chase and Lumen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Lumen Technologies
The main advantage of trading using opposite JPMorgan Chase and Lumen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Lumen Technologies 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 Lumen Technologies will offset losses from the drop in Lumen Technologies' long position.| JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. Victory Integrity Smallmid Cap | JPMorgan Chase vs. Hilton Worldwide Holdings | JPMorgan Chase vs. NVIDIA |
| Lumen Technologies vs. Victory Integrity Smallmid Cap | Lumen Technologies vs. Hilton Worldwide Holdings | Lumen Technologies vs. NVIDIA | Lumen Technologies vs. JPMorgan Chase Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |