Correlation Between JPMorgan Chase and USCF ETF
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and USCF ETF 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 USCF ETF 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 USCF ETF Trust, you can compare the effects of market volatilities on JPMorgan Chase and USCF ETF 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 USCF ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and USCF ETF.
Diversification Opportunities for JPMorgan Chase and USCF ETF
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and USCF is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and USCF ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF ETF Trust 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 USCF ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF ETF Trust has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and USCF ETF go up and down completely randomly.
Pair Corralation between JPMorgan Chase and USCF ETF
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.76 times more return on investment than USCF ETF. However, JPMorgan Chase is 2.76 times more volatile than USCF ETF Trust. It trades about 0.21 of its potential returns per unit of risk. USCF ETF Trust is currently generating about 0.22 per unit of risk. If you would invest 22,192 in JPMorgan Chase Co on September 1, 2024 and sell it today you would earn a total of 2,780 from holding JPMorgan Chase Co or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. USCF ETF Trust
Performance |
| Timeline |
| JPMorgan Chase |
| USCF ETF Trust |
JPMorgan Chase and USCF ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and USCF ETF
The main advantage of trading using opposite JPMorgan Chase and USCF ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, USCF ETF 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 USCF ETF will offset losses from the drop in USCF ETF's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| USCF ETF vs. Franklin Templeton ETF | USCF ETF vs. Altrius Global Dividend | USCF ETF vs. Invesco Exchange Traded | USCF ETF vs. Franklin International Core |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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