Correlation Between JPMorgan Chase and SOUTHERN
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By analyzing existing cross correlation between JPMorgan Chase Co and SOUTHERN CALIF GAS, 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
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and SOUTHERN is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and SOUTHERN CALIF GAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF GAS 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 GAS 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 is expected to generate 109.82 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, JPMorgan Chase Co is 95.81 times less risky than SOUTHERN. It trades about 0.1 of its potential returns per unit of risk. SOUTHERN CALIF GAS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,785 in SOUTHERN CALIF GAS on September 3, 2024 and sell it today you would lose (209.00) from holding SOUTHERN CALIF GAS or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.77% |
| Values | Daily Returns |
JPMorgan Chase Co vs. SOUTHERN CALIF GAS
Performance |
| Timeline |
| JPMorgan Chase |
| SOUTHERN CALIF GAS |
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. Partner Communications | JPMorgan Chase vs. Merck Company | JPMorgan Chase vs. Western Midstream Partners | JPMorgan Chase vs. Edgewise Therapeutics |
| SOUTHERN vs. Udemy Inc | SOUTHERN vs. Transocean | SOUTHERN vs. Valneva SE ADR | SOUTHERN vs. Sable Offshore 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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