Correlation Between JPMorgan Chase and SOUTHERN
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By analyzing existing cross correlation between JPMorgan Chase Co and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on JPMorgan Chase and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and SOUTHERN.
Diversification Opportunities for JPMorgan Chase and SOUTHERN
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and SOUTHERN is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and SOUTHERN go up and down completely randomly.
Pair Corralation between JPMorgan Chase and SOUTHERN
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.07 times more return on investment than SOUTHERN. However, JPMorgan Chase is 3.07 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.2 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.13 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 2,504 from holding JPMorgan Chase Co or generate 11.39% 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. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| JPMorgan Chase |
| SOUTHERN CALIF EDISON |
JPMorgan Chase and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and SOUTHERN
The main advantage of trading using opposite JPMorgan Chase and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Aquagold International | JPMorgan Chase vs. Thrivent High Yield | JPMorgan Chase vs. Morningstar Unconstrained Allocation |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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