Correlation Between JPMorgan Chase and Usaa Nasdaq
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Usaa Nasdaq 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 Usaa Nasdaq 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 Usaa Nasdaq 100, you can compare the effects of market volatilities on JPMorgan Chase and Usaa Nasdaq 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 Usaa Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Usaa Nasdaq.
Diversification Opportunities for JPMorgan Chase and Usaa Nasdaq
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and Usaa is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Usaa Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usaa Nasdaq 100 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 Usaa Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usaa Nasdaq 100 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Usaa Nasdaq go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Usaa Nasdaq
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.31 times more return on investment than Usaa Nasdaq. However, JPMorgan Chase is 1.31 times more volatile than Usaa Nasdaq 100. It trades about 0.16 of its potential returns per unit of risk. Usaa Nasdaq 100 is currently generating about 0.11 per unit of risk. If you would invest 14,072 in JPMorgan Chase Co on September 1, 2024 and sell it today you would earn a total of 10,900 from holding JPMorgan Chase Co or generate 77.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Usaa Nasdaq 100
Performance |
| Timeline |
| JPMorgan Chase |
| Usaa Nasdaq 100 |
JPMorgan Chase and Usaa Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Usaa Nasdaq
The main advantage of trading using opposite JPMorgan Chase and Usaa Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Usaa Nasdaq 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 Usaa Nasdaq will offset losses from the drop in Usaa Nasdaq's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Usaa Nasdaq vs. Doubleline Emerging Markets | Usaa Nasdaq vs. Shelton Emerging Markets | Usaa Nasdaq vs. Transamerica Emerging Markets | Usaa Nasdaq vs. Pnc Emerging Markets |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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