Correlation Between JPMorgan Chase and NUCOR
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By analyzing existing cross correlation between JPMorgan Chase Co and NUCOR P 395, you can compare the effects of market volatilities on JPMorgan Chase and NUCOR 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 NUCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and NUCOR.
Diversification Opportunities for JPMorgan Chase and NUCOR
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and NUCOR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and NUCOR P 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUCOR P 5 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 NUCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUCOR P 5 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and NUCOR go up and down completely randomly.
Pair Corralation between JPMorgan Chase and NUCOR
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 6.06 times more return on investment than NUCOR. However, JPMorgan Chase is 6.06 times more volatile than NUCOR P 395. It trades about 0.12 of its potential returns per unit of risk. NUCOR P 395 is currently generating about 0.01 per unit of risk. If you would invest 19,686 in JPMorgan Chase Co on September 2, 2024 and sell it today you would earn a total of 5,286 from holding JPMorgan Chase Co or generate 26.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
JPMorgan Chase Co vs. NUCOR P 395
Performance |
| Timeline |
| JPMorgan Chase |
| NUCOR P 5 |
JPMorgan Chase and NUCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and NUCOR
The main advantage of trading using opposite JPMorgan Chase and NUCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, NUCOR 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 NUCOR will offset losses from the drop in NUCOR's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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