Correlation Between JPMorgan Chase and Global X
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Global X 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 Global X 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 Global X Short Term, you can compare the effects of market volatilities on JPMorgan Chase and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Global X.
Diversification Opportunities for JPMorgan Chase and Global X
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Global is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Global X Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Short 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Short has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Global X go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Global X
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 20.38 times more return on investment than Global X. However, JPMorgan Chase is 20.38 times more volatile than Global X Short Term. It trades about 0.11 of its potential returns per unit of risk. Global X Short Term is currently generating about -0.03 per unit of risk. If you would invest 12,602 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 12,377 from holding JPMorgan Chase Co or generate 98.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 11.49% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Global X Short Term
Performance |
| Timeline |
| JPMorgan Chase |
| Global X Short |
JPMorgan Chase and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Global X
The main advantage of trading using opposite JPMorgan Chase and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Global X vs. Global X Funds | Global X vs. US Treasury 12 | Global X vs. Tidal Trust II | Global X vs. Franklin Liberty Treasury |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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