Correlation Between JPMorgan Chase and UBS Group
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and UBS Group 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 UBS Group 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 UBS Group AG, you can compare the effects of market volatilities on JPMorgan Chase and UBS Group 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 UBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and UBS Group.
Diversification Opportunities for JPMorgan Chase and UBS Group
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and UBS is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and UBS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Group AG 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 UBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Group AG has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and UBS Group go up and down completely randomly.
Pair Corralation between JPMorgan Chase and UBS Group
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.92 times more return on investment than UBS Group. However, JPMorgan Chase Co is 1.08 times less risky than UBS Group. It trades about 0.14 of its potential returns per unit of risk. UBS Group AG is currently generating about 0.05 per unit of risk. If you would invest 15,244 in JPMorgan Chase Co on August 26, 2024 and sell it today you would earn a total of 9,611 from holding JPMorgan Chase Co or generate 63.05% 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. UBS Group AG
Performance |
| Timeline |
| JPMorgan Chase |
| UBS Group AG |
JPMorgan Chase and UBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and UBS Group
The main advantage of trading using opposite JPMorgan Chase and UBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, UBS Group 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 UBS Group will offset losses from the drop in UBS Group's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| UBS Group vs. Citigroup | UBS Group vs. Barclays PLC ADR | UBS Group vs. HSBC Holdings PLC | UBS Group 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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