Correlation Between JPMorgan Chase and Origin Bancorp
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Origin Bancorp 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 Origin Bancorp 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 Origin Bancorp, you can compare the effects of market volatilities on JPMorgan Chase and Origin Bancorp 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 Origin Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Origin Bancorp.
Diversification Opportunities for JPMorgan Chase and Origin Bancorp
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Origin is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Origin Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Bancorp 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 Origin Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Bancorp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Origin Bancorp go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Origin Bancorp
If you would invest 19,719 in JPMorgan Chase Co on August 26, 2024 and sell it today you would earn a total of 5,136 from holding JPMorgan Chase Co or generate 26.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Origin Bancorp
Performance |
| Timeline |
| JPMorgan Chase |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase and Origin Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Origin Bancorp
The main advantage of trading using opposite JPMorgan Chase and Origin Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Origin Bancorp 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 Origin Bancorp will offset losses from the drop in Origin Bancorp's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Origin Bancorp vs. Home Federal Bancorp | Origin Bancorp vs. First Financial Northwest | Origin Bancorp vs. First Northwest Bancorp | Origin Bancorp vs. First Capital |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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