Correlation Between JPMorgan Chase and 00440EAS6
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By analyzing existing cross correlation between JPMorgan Chase Co and ACE INA HLDGS, you can compare the effects of market volatilities on JPMorgan Chase and 00440EAS6 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 00440EAS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and 00440EAS6.
Diversification Opportunities for JPMorgan Chase and 00440EAS6
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and 00440EAS6 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ACE INA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACE INA HLDGS 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 00440EAS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACE INA HLDGS has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and 00440EAS6 go up and down completely randomly.
Pair Corralation between JPMorgan Chase and 00440EAS6
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 8.04 times more return on investment than 00440EAS6. However, JPMorgan Chase is 8.04 times more volatile than ACE INA HLDGS. It trades about 0.18 of its potential returns per unit of risk. ACE INA HLDGS is currently generating about -0.21 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 28, 2024 and sell it today you would earn a total of 2,479 from holding JPMorgan Chase Co or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
JPMorgan Chase Co vs. ACE INA HLDGS
Performance |
| Timeline |
| JPMorgan Chase |
| ACE INA HLDGS |
JPMorgan Chase and 00440EAS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and 00440EAS6
The main advantage of trading using opposite JPMorgan Chase and 00440EAS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, 00440EAS6 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 00440EAS6 will offset losses from the drop in 00440EAS6's long position.The idea behind JPMorgan Chase Co and ACE INA HLDGS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 00440EAS6 vs. AEP TEX INC | 00440EAS6 vs. US BANK NATIONAL | 00440EAS6 vs. Eat Beyond Global | 00440EAS6 vs. Charles Schwab Corp |
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