Correlation Between City National and Jpmorgan E
Can any of the company-specific risk be diversified away by investing in both City National and Jpmorgan E 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 City National and Jpmorgan E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Jpmorgan E Plus, you can compare the effects of market volatilities on City National and Jpmorgan E 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 City National with a short position of Jpmorgan E. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Jpmorgan E.
Diversification Opportunities for City National and Jpmorgan E
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Jpmorgan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Jpmorgan E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Plus and City National 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 City National Rochdale are associated (or correlated) with Jpmorgan E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Plus has no effect on the direction of City National i.e., City National and Jpmorgan E go up and down completely randomly.
Pair Corralation between City National and Jpmorgan E
Assuming the 90 days horizon City National Rochdale is expected to generate 0.34 times more return on investment than Jpmorgan E. However, City National Rochdale is 2.92 times less risky than Jpmorgan E. It trades about 0.26 of its potential returns per unit of risk. Jpmorgan E Plus is currently generating about 0.05 per unit of risk. If you would invest 1,843 in City National Rochdale on September 14, 2024 and sell it today you would earn a total of 141.00 from holding City National Rochdale or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Jpmorgan E Plus
Performance |
| Timeline |
| City National Rochdale |
| Jpmorgan E Plus |
City National and Jpmorgan E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Jpmorgan E
The main advantage of trading using opposite City National and Jpmorgan E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Jpmorgan E 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 E will offset losses from the drop in Jpmorgan E's long position.| City National vs. Columbia Global Technology | City National vs. Vanguard Information Technology | City National vs. Icon Information Technology | City National vs. Science Technology Fund |
| Jpmorgan E vs. Jpmorgan Smartretirement 2035 | Jpmorgan E vs. Jpmorgan Smartretirement 2035 | Jpmorgan E vs. Jpmorgan Smartretirement 2035 | Jpmorgan E vs. Jpmorgan Smartretirement 2035 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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