Correlation Between JPMorgan Chase and Premium Brands
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Premium Brands 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 Premium Brands 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 Premium Brands Holdings, you can compare the effects of market volatilities on JPMorgan Chase and Premium Brands 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 Premium Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Premium Brands.
Diversification Opportunities for JPMorgan Chase and Premium Brands
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Premium is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Premium Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premium Brands Holdings 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 Premium Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premium Brands Holdings has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Premium Brands go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Premium Brands
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.77 times more return on investment than Premium Brands. However, JPMorgan Chase Co is 1.3 times less risky than Premium Brands. It trades about 0.62 of its potential returns per unit of risk. Premium Brands Holdings is currently generating about -0.1 per unit of risk. If you would invest 23,877 in JPMorgan Chase Co on November 3, 2024 and sell it today you would earn a total of 2,853 from holding JPMorgan Chase Co or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Premium Brands Holdings
Performance |
| Timeline |
| JPMorgan Chase |
| Premium Brands Holdings |
JPMorgan Chase and Premium Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Premium Brands
The main advantage of trading using opposite JPMorgan Chase and Premium Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Premium Brands 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 Premium Brands will offset losses from the drop in Premium Brands' long position.| JPMorgan Chase vs. ProShares Russell Dividend | JPMorgan Chase vs. United Rentals | JPMorgan Chase vs. Kforce Inc | JPMorgan Chase vs. The Ensign Group |
| Premium Brands vs. Maple Leaf Foods | Premium Brands vs. Power of | Premium Brands vs. The North West | Premium Brands vs. Badger Infrastructure Solutions |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |