Correlation Between JPMorgan Chase and NORDSTROM
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By analyzing existing cross correlation between JPMorgan Chase Co and NORDSTROM INC 695, you can compare the effects of market volatilities on JPMorgan Chase and NORDSTROM 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 NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and NORDSTROM.
Diversification Opportunities for JPMorgan Chase and NORDSTROM
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and NORDSTROM is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and NORDSTROM INC 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM INC 695 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 NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM INC 695 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and NORDSTROM go up and down completely randomly.
Pair Corralation between JPMorgan Chase and NORDSTROM
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.5 times more return on investment than NORDSTROM. However, JPMorgan Chase is 2.5 times more volatile than NORDSTROM INC 695. It trades about 0.11 of its potential returns per unit of risk. NORDSTROM INC 695 is currently generating about 0.01 per unit of risk. If you would invest 19,719 in JPMorgan Chase Co on August 25, 2024 and sell it today you would earn a total of 5,136 from holding JPMorgan Chase Co or generate 26.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
JPMorgan Chase Co vs. NORDSTROM INC 695
Performance |
| Timeline |
| JPMorgan Chase |
| NORDSTROM INC 695 |
JPMorgan Chase and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and NORDSTROM
The main advantage of trading using opposite JPMorgan Chase and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| NORDSTROM vs. The Coca Cola | NORDSTROM vs. JPMorgan Chase Co | NORDSTROM vs. Dupont De Nemours | NORDSTROM vs. Alcoa 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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