Correlation Between JPMorgan Chase and Cref Inflation-linked
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Cref Inflation-linked 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 Cref Inflation-linked 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 Cref Inflation Linked Bond, you can compare the effects of market volatilities on JPMorgan Chase and Cref Inflation-linked 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 Cref Inflation-linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Cref Inflation-linked.
Diversification Opportunities for JPMorgan Chase and Cref Inflation-linked
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Cref is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Cref Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Inflation Linked 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 Cref Inflation-linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Inflation Linked has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Cref Inflation-linked go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Cref Inflation-linked
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 10.63 times more return on investment than Cref Inflation-linked. However, JPMorgan Chase is 10.63 times more volatile than Cref Inflation Linked Bond. It trades about 0.11 of its potential returns per unit of risk. Cref Inflation Linked Bond is currently generating about 0.02 per unit of risk. If you would invest 21,896 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 3,076 from holding JPMorgan Chase Co or generate 14.05% 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. Cref Inflation Linked Bond
Performance |
| Timeline |
| JPMorgan Chase |
| Cref Inflation Linked |
JPMorgan Chase and Cref Inflation-linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Cref Inflation-linked
The main advantage of trading using opposite JPMorgan Chase and Cref Inflation-linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Cref Inflation-linked 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 Cref Inflation-linked will offset losses from the drop in Cref Inflation-linked's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Cref Inflation-linked vs. Vanguard Total Stock | Cref Inflation-linked vs. Vanguard 500 Index | Cref Inflation-linked vs. Vanguard Total Stock | Cref Inflation-linked vs. Vanguard Total Stock |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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