Correlation Between JPMorgan Chase and Tradr 2X
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Tradr 2X 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 Tradr 2X 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 Tradr 2X Long, you can compare the effects of market volatilities on JPMorgan Chase and Tradr 2X 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 Tradr 2X. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Tradr 2X.
Diversification Opportunities for JPMorgan Chase and Tradr 2X
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Tradr is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Tradr 2X Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradr 2X Long 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 Tradr 2X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradr 2X Long has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Tradr 2X go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Tradr 2X
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.44 times more return on investment than Tradr 2X. However, JPMorgan Chase is 1.44 times more volatile than Tradr 2X Long. It trades about 0.21 of its potential returns per unit of risk. Tradr 2X Long is currently generating about 0.23 per unit of risk. If you would invest 22,192 in JPMorgan Chase Co on September 1, 2024 and sell it today you would earn a total of 2,780 from holding JPMorgan Chase Co or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Tradr 2X Long
Performance |
| Timeline |
| JPMorgan Chase |
| Tradr 2X Long |
JPMorgan Chase and Tradr 2X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Tradr 2X
The main advantage of trading using opposite JPMorgan Chase and Tradr 2X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Tradr 2X 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 Tradr 2X will offset losses from the drop in Tradr 2X's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Tradr 2X vs. FT Vest Equity | Tradr 2X vs. Northern Lights | Tradr 2X vs. Dimensional International High | Tradr 2X vs. Matthews China Discovery |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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