Correlation Between Maple Leaf and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and JPMorgan Chase 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 Maple Leaf and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and JPMorgan Chase Co, you can compare the effects of market volatilities on Maple Leaf and JPMorgan Chase 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 Maple Leaf with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and JPMorgan Chase.
Diversification Opportunities for Maple Leaf and JPMorgan Chase
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maple and JPMorgan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Maple Leaf 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 Maple Leaf Foods are associated (or correlated) with JPMorgan Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Chase has no effect on the direction of Maple Leaf i.e., Maple Leaf and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Maple Leaf and JPMorgan Chase
Assuming the 90 days trading horizon Maple Leaf is expected to generate 1.5 times less return on investment than JPMorgan Chase. In addition to that, Maple Leaf is 1.77 times more volatile than JPMorgan Chase Co. It trades about 0.14 of its total potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.36 per unit of volatility. If you would invest 3,201 in JPMorgan Chase Co on October 25, 2024 and sell it today you would earn a total of 285.00 from holding JPMorgan Chase Co or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. JPMorgan Chase Co
Performance |
| Timeline |
| Maple Leaf Foods |
| JPMorgan Chase |
Maple Leaf and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and JPMorgan Chase
The main advantage of trading using opposite Maple Leaf and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, JPMorgan Chase 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 JPMorgan Chase will offset losses from the drop in JPMorgan Chase's long position.| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
| JPMorgan Chase vs. Monument Mining Limited | JPMorgan Chase vs. Vizsla Silver Corp | JPMorgan Chase vs. Plaza Retail REIT | JPMorgan Chase vs. NextSource Materials |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |