Correlation Between JPMorgan Chase and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Strategy Shares 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 Strategy Shares 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 Strategy Shares, you can compare the effects of market volatilities on JPMorgan Chase and Strategy Shares 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 Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Strategy Shares.
Diversification Opportunities for JPMorgan Chase and Strategy Shares
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and Strategy is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Strategy Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares 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 Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Strategy Shares go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Strategy Shares
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.22 times more return on investment than Strategy Shares. However, JPMorgan Chase is 1.22 times more volatile than Strategy Shares. It trades about 0.1 of its potential returns per unit of risk. Strategy Shares is currently generating about 0.05 per unit of risk. If you would invest 12,729 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 12,243 from holding JPMorgan Chase Co or generate 96.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 31.05% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Strategy Shares
Performance |
| Timeline |
| JPMorgan Chase |
| Strategy Shares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Strategy Shares
The main advantage of trading using opposite JPMorgan Chase and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Strategy Shares vs. Vanguard Growth Index | Strategy Shares vs. iShares Russell 1000 | Strategy Shares vs. iShares SP 500 | Strategy Shares vs. iShares Core SP |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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