Correlation Between JPMorgan Chase and LOWES
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By analyzing existing cross correlation between JPMorgan Chase Co and LOWES PANIES INC, you can compare the effects of market volatilities on JPMorgan Chase and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and LOWES.
Diversification Opportunities for JPMorgan Chase and LOWES
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and LOWES is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and LOWES go up and down completely randomly.
Pair Corralation between JPMorgan Chase and LOWES
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 8.31 times more return on investment than LOWES. However, JPMorgan Chase is 8.31 times more volatile than LOWES PANIES INC. It trades about 0.21 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.23 per unit of risk. If you would invest 21,978 in JPMorgan Chase Co on September 4, 2024 and sell it today you would earn a total of 2,647 from holding JPMorgan Chase Co or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
JPMorgan Chase Co vs. LOWES PANIES INC
Performance |
| Timeline |
| JPMorgan Chase |
| LOWES PANIES INC |
JPMorgan Chase and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and LOWES
The main advantage of trading using opposite JPMorgan Chase and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Aquagold International | JPMorgan Chase vs. Thrivent High Yield | JPMorgan Chase vs. Morningstar Unconstrained Allocation |
| LOWES vs. Enersys | LOWES vs. Jacobs Solutions | LOWES vs. Tesla Inc | LOWES vs. Inflection Point Acquisition |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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