Correlation Between JPMorgan Chase and ENBRIDGE

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Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and ENBRIDGE 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 ENBRIDGE 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 ENBRIDGE INC 45, you can compare the effects of market volatilities on JPMorgan Chase and ENBRIDGE 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 ENBRIDGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and ENBRIDGE.

Diversification Opportunities for JPMorgan Chase and ENBRIDGE

JPMorganENBRIDGEDiversified AwayJPMorganENBRIDGEDiversified Away100%
-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between JPMorgan and ENBRIDGE is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ENBRIDGE INC 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENBRIDGE INC 45 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 ENBRIDGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENBRIDGE INC 45 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ENBRIDGE go up and down completely randomly.

Pair Corralation between JPMorgan Chase and ENBRIDGE

Considering the 90-day investment horizon JPMorgan Chase Co is expected to under-perform the ENBRIDGE. In addition to that, JPMorgan Chase is 1.31 times more volatile than ENBRIDGE INC 45. It trades about 0.0 of its total potential returns per unit of risk. ENBRIDGE INC 45 is currently generating about 0.05 per unit of volatility. If you would invest  8,249  in ENBRIDGE INC 45 on November 25, 2024 and sell it today you would earn a total of  37.00  from holding ENBRIDGE INC 45 or generate 0.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy47.62%
ValuesDaily Returns

JPMorgan Chase Co  vs.  ENBRIDGE INC 45

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-5051015
JavaScript chart by amCharts 3.21.15JPM 29250NAJ4
       Timeline  
JPMorgan Chase 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb230240250260270280
ENBRIDGE INC 45 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ENBRIDGE INC 45 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ENBRIDGE INC 45 investors.
JavaScript chart by amCharts 3.21.15OctNovDecJanFebNovDecJanFeb818283848586878889

JPMorgan Chase and ENBRIDGE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.7-2.77-1.84-0.91-0.01550.961.942.933.924.91 0.10.20.30.4
JavaScript chart by amCharts 3.21.15JPM 29250NAJ4
       Returns  

Pair Trading with JPMorgan Chase and ENBRIDGE

The main advantage of trading using opposite JPMorgan Chase and ENBRIDGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ENBRIDGE 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 ENBRIDGE will offset losses from the drop in ENBRIDGE's long position.
The idea behind JPMorgan Chase Co and ENBRIDGE INC 45 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.
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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