Correlation Between JPMorgan Chase and Medical Marijuana
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Medical Marijuana 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 Medical Marijuana 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 Medical Marijuana I, you can compare the effects of market volatilities on JPMorgan Chase and Medical Marijuana 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 Medical Marijuana. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Medical Marijuana.
Diversification Opportunities for JPMorgan Chase and Medical Marijuana
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Medical is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Medical Marijuana I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Marijuana 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 Medical Marijuana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Marijuana has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Medical Marijuana go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Medical Marijuana
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.22 times more return on investment than Medical Marijuana. However, JPMorgan Chase Co is 4.62 times less risky than Medical Marijuana. It trades about 0.11 of its potential returns per unit of risk. Medical Marijuana I is currently generating about -0.07 per unit of risk. If you would invest 20,029 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 4,950 from holding JPMorgan Chase Co or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Medical Marijuana I
Performance |
| Timeline |
| JPMorgan Chase |
| Medical Marijuana |
JPMorgan Chase and Medical Marijuana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Medical Marijuana
The main advantage of trading using opposite JPMorgan Chase and Medical Marijuana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Medical Marijuana 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 Medical Marijuana will offset losses from the drop in Medical Marijuana's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Medical Marijuana vs. American Green | Medical Marijuana vs. North American Cannabis | Medical Marijuana vs. Marijuana | Medical Marijuana vs. Rimrock Gold 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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