Correlation Between JPMorgan Chase and PETROLEOS
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By analyzing existing cross correlation between JPMorgan Chase Co and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on JPMorgan Chase and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and PETROLEOS.
Diversification Opportunities for JPMorgan Chase and PETROLEOS
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and PETROLEOS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and PETROLEOS go up and down completely randomly.
Pair Corralation between JPMorgan Chase and PETROLEOS
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.95 times more return on investment than PETROLEOS. However, JPMorgan Chase Co is 1.05 times less risky than PETROLEOS. It trades about 0.18 of its potential returns per unit of risk. PETROLEOS MEXICANOS 65 is currently generating about -0.08 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 2,447 from holding JPMorgan Chase Co or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
JPMorgan Chase Co vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| JPMorgan Chase |
| PETROLEOS MEXICANOS |
JPMorgan Chase and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and PETROLEOS
The main advantage of trading using opposite JPMorgan Chase and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.The idea behind JPMorgan Chase Co and PETROLEOS MEXICANOS 65 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.| PETROLEOS vs. Molson Coors Brewing | PETROLEOS vs. Willamette Valley Vineyards | PETROLEOS vs. TFI International | PETROLEOS vs. Constellation Brands Class |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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