Correlation Between JPMorgan Chase and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Opportunities, you can compare the effects of market volatilities on JPMorgan Chase and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Tekla Healthcare.
Diversification Opportunities for JPMorgan Chase and Tekla Healthcare
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Tekla is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Tekla Healthcare Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Opp 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Opp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Tekla Healthcare go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Tekla Healthcare
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.51 times more return on investment than Tekla Healthcare. However, JPMorgan Chase is 1.51 times more volatile than Tekla Healthcare Opportunities. It trades about 0.1 of its potential returns per unit of risk. Tekla Healthcare Opportunities is currently generating about 0.04 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 Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Tekla Healthcare Opportunities
Performance |
| Timeline |
| JPMorgan Chase |
| Tekla Healthcare Opp |
JPMorgan Chase and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Tekla Healthcare
The main advantage of trading using opposite JPMorgan Chase and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's 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 |
| Tekla Healthcare vs. Tekla Healthcare Investors | Tekla Healthcare vs. Tekla Life Sciences | Tekla Healthcare vs. Cohen Steers Reit | Tekla Healthcare vs. XAI Octagon Floating |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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