Correlation Between 00108WAF7 and JPMORGAN
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By analyzing existing cross correlation between AEP TEX INC and JPMORGAN CHASE 64, you can compare the effects of market volatilities on 00108WAF7 and JPMORGAN 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 00108WAF7 with a short position of JPMORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and JPMORGAN.
Diversification Opportunities for 00108WAF7 and JPMORGAN
Significant diversification
The 3 months correlation between 00108WAF7 and JPMORGAN is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and JPMORGAN CHASE 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN CHASE 64 and 00108WAF7 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 AEP TEX INC are associated (or correlated) with JPMORGAN. 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 64 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and JPMORGAN go up and down completely randomly.
Pair Corralation between 00108WAF7 and JPMORGAN
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 157.95 times more return on investment than JPMORGAN. However, 00108WAF7 is 157.95 times more volatile than JPMORGAN CHASE 64. It trades about 0.13 of its potential returns per unit of risk. JPMORGAN CHASE 64 is currently generating about 0.01 per unit of risk. If you would invest 8,736 in AEP TEX INC on August 28, 2024 and sell it today you would lose (515.00) from holding AEP TEX INC or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.29% |
| Values | Daily Returns |
AEP TEX INC vs. JPMORGAN CHASE 64
Performance |
| Timeline |
| AEP TEX INC |
| JPMORGAN CHASE 64 |
00108WAF7 and JPMORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and JPMORGAN
The main advantage of trading using opposite 00108WAF7 and JPMORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, JPMORGAN 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 will offset losses from the drop in JPMORGAN's long position.| 00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. Dupont De Nemours | 00108WAF7 vs. The Travelers Companies | 00108WAF7 vs. Exxon Mobil Corp |
| JPMORGAN vs. AEP TEX INC | JPMORGAN vs. US BANK NATIONAL | JPMORGAN vs. Eat Beyond Global | JPMORGAN vs. Charles Schwab 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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