Correlation Between JPMorgan Chase and ETF Series
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and ETF Series 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 ETF Series 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 ETF Series Solutions, you can compare the effects of market volatilities on JPMorgan Chase and ETF Series 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 ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and ETF Series.
Diversification Opportunities for JPMorgan Chase and ETF Series
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and ETF is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions 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 ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ETF Series go up and down completely randomly.
Pair Corralation between JPMorgan Chase and ETF Series
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 9.8 times more return on investment than ETF Series. However, JPMorgan Chase is 9.8 times more volatile than ETF Series Solutions. It trades about 0.11 of its potential returns per unit of risk. ETF Series Solutions is currently generating about 0.2 per unit of risk. If you would invest 13,625 in JPMorgan Chase Co on November 19, 2024 and sell it today you would earn a total of 14,034 from holding JPMorgan Chase Co or generate 103.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 85.48% |
| Values | Daily Returns |
JPMorgan Chase Co vs. ETF Series Solutions
Performance |
| Timeline |
| JPMorgan Chase |
| ETF Series Solutions |
JPMorgan Chase and ETF Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and ETF Series
The main advantage of trading using opposite JPMorgan Chase and ETF Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ETF Series 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 ETF Series will offset losses from the drop in ETF Series' long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| ETF Series vs. Two Roads Shared | ETF Series vs. LeaderSharesTM AlphaFactor Core | ETF Series vs. Two Roads Shared | ETF Series vs. HUMANA INC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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