Correlation Between JPMorgan Chase and EQUINOR
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By analyzing existing cross correlation between JPMorgan Chase Co and EQUINOR ASA, you can compare the effects of market volatilities on JPMorgan Chase and EQUINOR 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 EQUINOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and EQUINOR.
Diversification Opportunities for JPMorgan Chase and EQUINOR
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and EQUINOR is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA 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 EQUINOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and EQUINOR go up and down completely randomly.
Pair Corralation between JPMorgan Chase and EQUINOR
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 6.05 times more return on investment than EQUINOR. However, JPMorgan Chase is 6.05 times more volatile than EQUINOR ASA. It trades about 0.1 of its potential returns per unit of risk. EQUINOR ASA is currently generating about 0.01 per unit of risk. If you would invest 12,729 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 12,243 from holding JPMorgan Chase Co or generate 96.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. EQUINOR ASA
Performance |
| Timeline |
| JPMorgan Chase |
| EQUINOR ASA |
JPMorgan Chase and EQUINOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and EQUINOR
The main advantage of trading using opposite JPMorgan Chase and EQUINOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, EQUINOR 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 EQUINOR will offset losses from the drop in EQUINOR's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
| EQUINOR vs. Bank of America | EQUINOR vs. Sabre Corpo | EQUINOR vs. Electrovaya Common Shares | EQUINOR vs. SEI Investments |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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