Correlation Between JPMorgan Chase and IndexIQ
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and IndexIQ 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 IndexIQ 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 IndexIQ, you can compare the effects of market volatilities on JPMorgan Chase and IndexIQ 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 IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and IndexIQ.
Diversification Opportunities for JPMorgan Chase and IndexIQ
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and IndexIQ is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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 IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and IndexIQ go up and down completely randomly.
Pair Corralation between JPMorgan Chase and IndexIQ
If you would invest 15,139 in JPMorgan Chase Co on September 12, 2024 and sell it today you would earn a total of 9,147 from holding JPMorgan Chase Co or generate 60.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.28% |
| Values | Daily Returns |
JPMorgan Chase Co vs. IndexIQ
Performance |
| Timeline |
| JPMorgan Chase |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and IndexIQ
The main advantage of trading using opposite JPMorgan Chase and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ's 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 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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