Correlation Between JPMorgan Chase and Zepp Health
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Zepp Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JPMorgan Chase and Zepp Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and Zepp Health Corp, you can compare the effects of market volatilities on JPMorgan Chase and Zepp Health 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 Zepp Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Zepp Health.
Diversification Opportunities for JPMorgan Chase and Zepp Health
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Zepp is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Zepp Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zepp Health Corp 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 Zepp Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zepp Health Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Zepp Health go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Zepp Health
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.3 times more return on investment than Zepp Health. However, JPMorgan Chase Co is 3.3 times less risky than Zepp Health. It trades about 0.11 of its potential returns per unit of risk. Zepp Health Corp is currently generating about -0.01 per unit of risk. If you would invest 12,472 in JPMorgan Chase Co on August 28, 2024 and sell it today you would earn a total of 12,557 from holding JPMorgan Chase Co or generate 100.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Zepp Health Corp
Performance |
| Timeline |
| JPMorgan Chase |
| Zepp Health Corp |
JPMorgan Chase and Zepp Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Zepp Health
The main advantage of trading using opposite JPMorgan Chase and Zepp Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Zepp Health 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 Zepp Health will offset losses from the drop in Zepp Health's long position.| JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal | JPMorgan Chase vs. Bank of Nova |
| Zepp Health vs. VOXX International | Zepp Health vs. LG Display Co | Zepp Health vs. Vizio Holding Corp | Zepp Health vs. Turtle Beach 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.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |