Correlation Between JPMorgan Chase and Marine Bancorp
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Marine Bancorp 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 Marine Bancorp 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 Marine Bancorp of, you can compare the effects of market volatilities on JPMorgan Chase and Marine Bancorp 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 Marine Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Marine Bancorp.
Diversification Opportunities for JPMorgan Chase and Marine Bancorp
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Marine is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Marine Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Bancorp 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 Marine Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Bancorp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Marine Bancorp go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Marine Bancorp
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 52.79 times more return on investment than Marine Bancorp. However, JPMorgan Chase is 52.79 times more volatile than Marine Bancorp of. It trades about 0.11 of its potential returns per unit of risk. Marine Bancorp of is currently generating about 0.15 per unit of risk. If you would invest 22,148 in JPMorgan Chase Co on September 13, 2024 and sell it today you would earn a total of 2,086 from holding JPMorgan Chase Co or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Marine Bancorp of
Performance |
| Timeline |
| JPMorgan Chase |
| Marine Bancorp |
JPMorgan Chase and Marine Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Marine Bancorp
The main advantage of trading using opposite JPMorgan Chase and Marine Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Marine Bancorp 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 Marine Bancorp will offset losses from the drop in Marine Bancorp's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Canadian Imperial Bank |
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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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