Correlation Between JPMorgan Chase and Amplify Samsung
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Amplify Samsung 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 Amplify Samsung 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 Amplify Samsung SOFR, you can compare the effects of market volatilities on JPMorgan Chase and Amplify Samsung 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 Amplify Samsung. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Amplify Samsung.
Diversification Opportunities for JPMorgan Chase and Amplify Samsung
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Amplify is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Amplify Samsung SOFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Samsung SOFR 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 Amplify Samsung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Samsung SOFR has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Amplify Samsung go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Amplify Samsung
If you would invest 22,441 in JPMorgan Chase Co on August 31, 2024 and sell it today you would earn a total of 2,538 from holding JPMorgan Chase Co or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Amplify Samsung SOFR
Performance |
| Timeline |
| JPMorgan Chase |
| Amplify Samsung SOFR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Market Crasher
JPMorgan Chase and Amplify Samsung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Amplify Samsung
The main advantage of trading using opposite JPMorgan Chase and Amplify Samsung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Amplify Samsung 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 Amplify Samsung will offset losses from the drop in Amplify Samsung's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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