Correlation Between JPMorgan Chase and SANDS
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By analyzing existing cross correlation between JPMorgan Chase Co and SANDS CHINA LTD, you can compare the effects of market volatilities on JPMorgan Chase and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and SANDS.
Diversification Opportunities for JPMorgan Chase and SANDS
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and SANDS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and SANDS go up and down completely randomly.
Pair Corralation between JPMorgan Chase and SANDS
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 8.17 times more return on investment than SANDS. However, JPMorgan Chase is 8.17 times more volatile than SANDS CHINA LTD. It trades about 0.18 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about -0.21 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 28, 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 | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
JPMorgan Chase Co vs. SANDS CHINA LTD
Performance |
| Timeline |
| JPMorgan Chase |
| SANDS CHINA LTD |
JPMorgan Chase and SANDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and SANDS
The main advantage of trading using opposite JPMorgan Chase and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS's long position.The idea behind JPMorgan Chase Co and SANDS CHINA LTD 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.| SANDS vs. AerSale Corp | SANDS vs. Daily Journal Corp | SANDS vs. Zane Interactive Publishing | SANDS vs. Alaska Air Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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