Correlation Between JPMorgan Chase and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Oklahoma Municipal 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 Oklahoma Municipal 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 Oklahoma Municipal Fund, you can compare the effects of market volatilities on JPMorgan Chase and Oklahoma Municipal 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 Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Oklahoma Municipal.
Diversification Opportunities for JPMorgan Chase and Oklahoma Municipal
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Oklahoma is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal 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 Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Oklahoma Municipal
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 8.08 times more return on investment than Oklahoma Municipal. However, JPMorgan Chase is 8.08 times more volatile than Oklahoma Municipal Fund. It trades about 0.18 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.16 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 2,432 from holding JPMorgan Chase Co or generate 10.78% 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. Oklahoma Municipal Fund
Performance |
| Timeline |
| JPMorgan Chase |
| Oklahoma Municipal |
JPMorgan Chase and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Oklahoma Municipal
The main advantage of trading using opposite JPMorgan Chase and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Oklahoma Municipal vs. Hennessy Technology Fund | Oklahoma Municipal vs. Allianzgi Technology Fund | Oklahoma Municipal vs. Dreyfus Technology Growth | Oklahoma Municipal vs. Janus Global Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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