Correlation Between JPMorgan Chase and Itasa Investimentos
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Itasa Investimentos 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 Itasa Investimentos 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 Itasa Investimentos, you can compare the effects of market volatilities on JPMorgan Chase and Itasa Investimentos 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 Itasa Investimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Itasa Investimentos.
Diversification Opportunities for JPMorgan Chase and Itasa Investimentos
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Itasa is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Itasa Investimentos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itasa Investimentos 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 Itasa Investimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itasa Investimentos has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Itasa Investimentos go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Itasa Investimentos
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 1.33 times more return on investment than Itasa Investimentos. However, JPMorgan Chase is 1.33 times more volatile than Itasa Investimentos. It trades about 0.16 of its potential returns per unit of risk. Itasa Investimentos is currently generating about 0.02 per unit of risk. If you would invest 8,589 in JPMorgan Chase Co on November 8, 2024 and sell it today you would earn a total of 7,141 from holding JPMorgan Chase Co or generate 83.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. Itasa Investimentos
Performance |
| Timeline |
| JPMorgan Chase |
| Itasa Investimentos |
JPMorgan Chase and Itasa Investimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Itasa Investimentos
The main advantage of trading using opposite JPMorgan Chase and Itasa Investimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Itasa Investimentos 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 Itasa Investimentos will offset losses from the drop in Itasa Investimentos' long position.| JPMorgan Chase vs. Public Storage | JPMorgan Chase vs. Extra Space Storage | JPMorgan Chase vs. Applied Materials, | JPMorgan Chase vs. METISA Metalrgica Timboense |
| Itasa Investimentos vs. Banco do Brasil | Itasa Investimentos vs. Banco Bradesco SA | Itasa Investimentos vs. Ita Unibanco Holding | Itasa Investimentos vs. Petrleo Brasileiro SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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