Correlation Between JPMorgan Chase and Roundhill GLP
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Roundhill GLP 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 Roundhill GLP 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 Roundhill GLP 1 Weight, you can compare the effects of market volatilities on JPMorgan Chase and Roundhill GLP 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 Roundhill GLP. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Roundhill GLP.
Diversification Opportunities for JPMorgan Chase and Roundhill GLP
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Roundhill is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Roundhill GLP 1 Weight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill GLP 1 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 Roundhill GLP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill GLP 1 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Roundhill GLP go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Roundhill GLP
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 2.56 times less return on investment than Roundhill GLP. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.59 times less risky than Roundhill GLP. It trades about 0.68 of its potential returns per unit of risk. Roundhill GLP 1 Weight is currently generating about 1.09 of returns per unit of risk over similar time horizon. If you would invest 2,338 in Roundhill GLP 1 Weight on November 9, 2024 and sell it today you would earn a total of 202.00 from holding Roundhill GLP 1 Weight or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Roundhill GLP 1 Weight
Performance |
| Timeline |
| JPMorgan Chase |
| Roundhill GLP 1 |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
JPMorgan Chase and Roundhill GLP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Roundhill GLP
The main advantage of trading using opposite JPMorgan Chase and Roundhill GLP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Roundhill GLP 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 Roundhill GLP will offset losses from the drop in Roundhill GLP's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Roundhill GLP vs. Freedom Day Dividend | Roundhill GLP vs. Franklin Templeton ETF | Roundhill GLP vs. iShares MSCI China | Roundhill GLP vs. Tidal Trust II |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |