Correlation Between JPMorgan Chase and AETNA
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By analyzing existing cross correlation between JPMorgan Chase Co and AETNA INC NEW, you can compare the effects of market volatilities on JPMorgan Chase and AETNA 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 AETNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and AETNA.
Diversification Opportunities for JPMorgan Chase and AETNA
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and AETNA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and AETNA INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AETNA INC NEW 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 AETNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AETNA INC NEW has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and AETNA go up and down completely randomly.
Pair Corralation between JPMorgan Chase and AETNA
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 45.69 times less return on investment than AETNA. But when comparing it to its historical volatility, JPMorgan Chase Co is 62.66 times less risky than AETNA. It trades about 0.11 of its potential returns per unit of risk. AETNA INC NEW is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 11,170 in AETNA INC NEW on August 30, 2024 and sell it today you would lose (530.00) from holding AETNA INC NEW or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.04% |
| Values | Daily Returns |
JPMorgan Chase Co vs. AETNA INC NEW
Performance |
| Timeline |
| JPMorgan Chase |
| AETNA INC NEW |
JPMorgan Chase and AETNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and AETNA
The main advantage of trading using opposite JPMorgan Chase and AETNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, AETNA 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 AETNA will offset losses from the drop in AETNA's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Royal Bank of | JPMorgan Chase vs. Nu Holdings |
| AETNA vs. RBC Bearings Incorporated | AETNA vs. HNI Corp | AETNA vs. Repligen | AETNA vs. Merit Medical Systems |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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