Correlation Between JPMorgan Chase and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Nuveen Amt-free 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 Nuveen Amt-free 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 Nuveen Amt Free Municipal, you can compare the effects of market volatilities on JPMorgan Chase and Nuveen Amt-free 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 Nuveen Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Nuveen Amt-free.
Diversification Opportunities for JPMorgan Chase and Nuveen Amt-free
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Nuveen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free 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 Nuveen Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Nuveen Amt-free
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.25 times more return on investment than Nuveen Amt-free. However, JPMorgan Chase is 3.25 times more volatile than Nuveen Amt Free Municipal. It trades about 0.11 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.17 per unit of risk. If you would invest 19,719 in JPMorgan Chase Co on August 24, 2024 and sell it today you would earn a total of 4,757 from holding JPMorgan Chase Co or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| JPMorgan Chase |
| Nuveen Amt Free |
JPMorgan Chase and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Nuveen Amt-free
The main advantage of trading using opposite JPMorgan Chase and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Nuveen Amt-free 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 Nuveen Amt-free will offset losses from the drop in Nuveen Amt-free's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Nuveen Amt-free vs. Nuveen Municipal Credit | Nuveen Amt-free vs. Nuveen Amt Free | Nuveen Amt-free vs. Nuveen Municipal Value | Nuveen Amt-free vs. Nuveen Municipal High |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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