Correlation Between JPMorgan Chase and Mainstay
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Mainstay 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 Mainstay 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 Mainstay Sp 500, you can compare the effects of market volatilities on JPMorgan Chase and Mainstay 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 Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Mainstay.
Diversification Opportunities for JPMorgan Chase and Mainstay
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Mainstay is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Mainstay go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Mainstay
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.3 times more return on investment than Mainstay. However, JPMorgan Chase is 3.3 times more volatile than Mainstay Sp 500. It trades about 0.19 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.16 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 28, 2024 and sell it today you would earn a total of 2,479 from holding JPMorgan Chase Co or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Mainstay Sp 500
Performance |
| Timeline |
| JPMorgan Chase |
| Mainstay Sp 500 |
JPMorgan Chase and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Mainstay
The main advantage of trading using opposite JPMorgan Chase and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Mainstay 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 Mainstay will offset losses from the drop in Mainstay's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal | JPMorgan Chase vs. Bank of Nova |
| Mainstay vs. Qs Large Cap | Mainstay vs. Omni Small Cap Value | Mainstay vs. Ab Global Risk | Mainstay vs. Small Cap Stock |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |