Correlation Between JPMorgan Chase and JEFFERIES
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By analyzing existing cross correlation between JPMorgan Chase Co and JEFFERIES GROUP INC, you can compare the effects of market volatilities on JPMorgan Chase and JEFFERIES 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 JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and JEFFERIES.
Diversification Opportunities for JPMorgan Chase and JEFFERIES
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and JEFFERIES is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and JEFFERIES GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEFFERIES GROUP INC 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 JEFFERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEFFERIES GROUP INC has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and JEFFERIES go up and down completely randomly.
Pair Corralation between JPMorgan Chase and JEFFERIES
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 5.0 times more return on investment than JEFFERIES. However, JPMorgan Chase is 5.0 times more volatile than JEFFERIES GROUP INC. It trades about 0.2 of its potential returns per unit of risk. JEFFERIES GROUP INC is currently generating about -0.11 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 | 86.05% |
| Values | Daily Returns |
JPMorgan Chase Co vs. JEFFERIES GROUP INC
Performance |
| Timeline |
| JPMorgan Chase |
| JEFFERIES GROUP INC |
JPMorgan Chase and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and JEFFERIES
The main advantage of trading using opposite JPMorgan Chase and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, JEFFERIES 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 JEFFERIES will offset losses from the drop in JEFFERIES's long position.The idea behind JPMorgan Chase Co and JEFFERIES GROUP INC 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.| JEFFERIES vs. Electronic Arts | JEFFERIES vs. Ainsworth Game Technology | JEFFERIES vs. Texas Roadhouse | JEFFERIES vs. BJs Restaurants |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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