Correlation Between JPMorgan Chase and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Timothy Plan 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 Timothy Plan 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 Timothy Plan , you can compare the effects of market volatilities on JPMorgan Chase and Timothy Plan 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 Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Timothy Plan.
Diversification Opportunities for JPMorgan Chase and Timothy Plan
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Timothy is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Timothy Plan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan 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 Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Timothy Plan go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Timothy Plan
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.22 times more return on investment than Timothy Plan. However, JPMorgan Chase is 3.22 times more volatile than Timothy Plan . It trades about 0.18 of its potential returns per unit of risk. Timothy Plan is currently generating about 0.24 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 27, 2024 and sell it today you would earn a total of 2,305 from holding JPMorgan Chase Co or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Timothy Plan
Performance |
| Timeline |
| JPMorgan Chase |
| Timothy Plan |
JPMorgan Chase and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Timothy Plan
The main advantage of trading using opposite JPMorgan Chase and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Timothy Plan 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 Timothy Plan will offset losses from the drop in Timothy Plan's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| Timothy Plan vs. Timothy Plan | Timothy Plan vs. Timothy Plan High | Timothy Plan vs. Timothy Plan LargeMid | Timothy Plan vs. Timothy Plan Small |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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