Correlation Between JPMorgan Chase and Segro Plc
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Segro Plc 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 Segro Plc 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 Segro Plc, you can compare the effects of market volatilities on JPMorgan Chase and Segro Plc 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 Segro Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Segro Plc.
Diversification Opportunities for JPMorgan Chase and Segro Plc
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Segro is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Segro Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segro Plc 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 Segro Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segro Plc has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Segro Plc go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Segro Plc
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.86 times more return on investment than Segro Plc. However, JPMorgan Chase Co is 1.16 times less risky than Segro Plc. It trades about 0.21 of its potential returns per unit of risk. Segro Plc is currently generating about -0.02 per unit of risk. If you would invest 22,294 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 2,678 from holding JPMorgan Chase Co or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Segro Plc
Performance |
| Timeline |
| JPMorgan Chase |
| Segro Plc |
JPMorgan Chase and Segro Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Segro Plc
The main advantage of trading using opposite JPMorgan Chase and Segro Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Segro Plc 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 Segro Plc will offset losses from the drop in Segro Plc's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Segro Plc vs. LXP Industrial Trust | Segro Plc vs. Plymouth Industrial REIT | Segro Plc vs. EastGroup Properties | Segro Plc vs. Americold Realty Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |