Correlation Between JPMorgan Chase and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Amplify ETF 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 Amplify ETF 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 Amplify ETF Trust, you can compare the effects of market volatilities on JPMorgan Chase and Amplify ETF 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 Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Amplify ETF.
Diversification Opportunities for JPMorgan Chase and Amplify ETF
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Amplify is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust 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 Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Amplify ETF go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Amplify ETF
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.47 times more return on investment than Amplify ETF. However, JPMorgan Chase is 1.47 times more volatile than Amplify ETF Trust. It trades about 0.11 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.06 per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Amplify ETF Trust
Performance |
| Timeline |
| JPMorgan Chase |
| Amplify ETF Trust |
JPMorgan Chase and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Amplify ETF
The main advantage of trading using opposite JPMorgan Chase and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Amplify ETF 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 Amplify ETF will offset losses from the drop in Amplify ETF'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 |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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