Correlation Between JPMorgan Chase and Umicore SA
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Umicore SA 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 Umicore SA 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 Umicore SA, you can compare the effects of market volatilities on JPMorgan Chase and Umicore SA 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 Umicore SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Umicore SA.
Diversification Opportunities for JPMorgan Chase and Umicore SA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and Umicore is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Umicore SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umicore SA 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 Umicore SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umicore SA has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Umicore SA go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Umicore SA
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.75 times more return on investment than Umicore SA. However, JPMorgan Chase is 1.75 times more volatile than Umicore SA. It trades about 0.21 of its potential returns per unit of risk. Umicore SA is currently generating about -0.32 per unit of risk. If you would invest 22,294 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 2,678 from holding JPMorgan Chase Co or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Umicore SA
Performance |
| Timeline |
| JPMorgan Chase |
| Umicore SA |
JPMorgan Chase and Umicore SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Umicore SA
The main advantage of trading using opposite JPMorgan Chase and Umicore SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Umicore SA 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 Umicore SA will offset losses from the drop in Umicore SA's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| Umicore SA vs. Eestech | Umicore SA vs. Bion Environmental Technologies | Umicore SA vs. TOMI Environmental Solutions |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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