Correlation Between JPMorgan Chase and US Nuclear
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and US Nuclear 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 US Nuclear 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 US Nuclear Corp, you can compare the effects of market volatilities on JPMorgan Chase and US Nuclear 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 US Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and US Nuclear.
Diversification Opportunities for JPMorgan Chase and US Nuclear
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and UCLE is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and US Nuclear Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Nuclear Corp 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 US Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Nuclear Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and US Nuclear go up and down completely randomly.
Pair Corralation between JPMorgan Chase and US Nuclear
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 24.73 times less return on investment than US Nuclear. But when comparing it to its historical volatility, JPMorgan Chase Co is 20.82 times less risky than US Nuclear. It trades about 0.11 of its potential returns per unit of risk. US Nuclear Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5.00 in US Nuclear Corp on August 28, 2024 and sell it today you would lose (2.70) from holding US Nuclear Corp or give up 54.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. US Nuclear Corp
Performance |
| Timeline |
| JPMorgan Chase |
| US Nuclear Corp |
JPMorgan Chase and US Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and US Nuclear
The main advantage of trading using opposite JPMorgan Chase and US Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, US Nuclear 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 US Nuclear will offset losses from the drop in US Nuclear's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal | JPMorgan Chase vs. Bank of Nova |
| US Nuclear vs. Garmin | US Nuclear vs. Keysight Technologies | US Nuclear vs. Fortive Corp | US Nuclear vs. Teledyne Technologies Incorporated |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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