Correlation Between JPMorgan Chase and Stratasys
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Stratasys 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 Stratasys 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 Stratasys, you can compare the effects of market volatilities on JPMorgan Chase and Stratasys 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 Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Stratasys.
Diversification Opportunities for JPMorgan Chase and Stratasys
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and Stratasys is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys 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 Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Stratasys go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Stratasys
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.43 times more return on investment than Stratasys. However, JPMorgan Chase Co is 2.34 times less risky than Stratasys. It trades about 0.1 of its potential returns per unit of risk. Stratasys is currently generating about 0.01 per unit of risk. If you would invest 12,392 in JPMorgan Chase Co on September 12, 2024 and sell it today you would earn a total of 11,894 from holding JPMorgan Chase Co or generate 95.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Stratasys
Performance |
| Timeline |
| JPMorgan Chase |
| Stratasys |
JPMorgan Chase and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Stratasys
The main advantage of trading using opposite JPMorgan Chase and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' long position.| JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. Victory Integrity Smallmid Cap | JPMorgan Chase vs. Hilton Worldwide Holdings | JPMorgan Chase vs. NVIDIA |
| Stratasys vs. Victory Integrity Smallmid Cap | Stratasys vs. Hilton Worldwide Holdings | Stratasys vs. NVIDIA | Stratasys vs. JPMorgan Chase Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |