Correlation Between JPMorgan Chase and CITIGROUP
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By analyzing existing cross correlation between JPMorgan Chase Co and CITIGROUP INC 32, you can compare the effects of market volatilities on JPMorgan Chase and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and CITIGROUP.
Diversification Opportunities for JPMorgan Chase and CITIGROUP
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and CITIGROUP is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and CITIGROUP INC 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 32 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 32 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and CITIGROUP go up and down completely randomly.
Pair Corralation between JPMorgan Chase and CITIGROUP
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 4.75 times more return on investment than CITIGROUP. However, JPMorgan Chase is 4.75 times more volatile than CITIGROUP INC 32. It trades about 0.2 of its potential returns per unit of risk. CITIGROUP INC 32 is currently generating about -0.17 per unit of risk. If you would invest 20,922 in JPMorgan Chase Co on August 28, 2024 and sell it today you would earn a total of 4,075 from holding JPMorgan Chase Co or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
JPMorgan Chase Co vs. CITIGROUP INC 32
Performance |
| Timeline |
| JPMorgan Chase |
| CITIGROUP INC 32 |
JPMorgan Chase and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and CITIGROUP
The main advantage of trading using opposite JPMorgan Chase and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.The idea behind JPMorgan Chase Co and CITIGROUP INC 32 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.| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP vs. Charles Schwab Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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