Correlation Between Triumph Financial and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Triumph Financial 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 Triumph Financial and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Financial and JPMorgan Chase Co, you can compare the effects of market volatilities on Triumph Financial 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 Triumph Financial with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Financial and JPMorgan Chase.
Diversification Opportunities for Triumph Financial and JPMorgan Chase
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Triumph and JPMorgan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Financial and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Triumph Financial 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 Triumph Financial 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 Triumph Financial i.e., Triumph Financial and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Triumph Financial and JPMorgan Chase
Assuming the 90 days horizon Triumph Financial is expected to generate 2.13 times less return on investment than JPMorgan Chase. But when comparing it to its historical volatility, Triumph Financial is 1.83 times less risky than JPMorgan Chase. It trades about 0.1 of its potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 21,896 in JPMorgan Chase Co on September 3, 2024 and sell it today you would earn a total of 3,076 from holding JPMorgan Chase Co or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triumph Financial vs. JPMorgan Chase Co
Performance |
| Timeline |
| Triumph Financial |
| JPMorgan Chase |
Triumph Financial and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Financial and JPMorgan Chase
The main advantage of trading using opposite Triumph Financial and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Financial 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.| Triumph Financial vs. JPMorgan Chase Co | Triumph Financial vs. Citigroup | Triumph Financial vs. Wells Fargo | Triumph Financial vs. Toronto Dominion Bank |
| JPMorgan Chase vs. Partner Communications | JPMorgan Chase vs. Merck Company | JPMorgan Chase vs. Western Midstream Partners | JPMorgan Chase vs. Edgewise Therapeutics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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