Correlation Between Occidental and JPMorgan Chase
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By analyzing existing cross correlation between Occidental Petroleum 66 and JPMorgan Chase Co, you can compare the effects of market volatilities on Occidental 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 Occidental with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental and JPMorgan Chase.
Diversification Opportunities for Occidental and JPMorgan Chase
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Occidental and JPMorgan is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum 66 and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Occidental 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 Occidental Petroleum 66 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 Occidental i.e., Occidental and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Occidental and JPMorgan Chase
Assuming the 90 days trading horizon Occidental is expected to generate 3.0 times less return on investment than JPMorgan Chase. But when comparing it to its historical volatility, Occidental Petroleum 66 is 4.36 times less risky than JPMorgan Chase. It trades about 0.27 of its potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 22,441 in JPMorgan Chase Co on August 31, 2024 and sell it today you would earn a total of 2,531 from holding JPMorgan Chase Co or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Occidental Petroleum 66 vs. JPMorgan Chase Co
Performance |
| Timeline |
| Occidental Petroleum |
| JPMorgan Chase |
Occidental and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Occidental and JPMorgan Chase
The main advantage of trading using opposite Occidental and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental 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.| Occidental vs. AEP TEX INC | Occidental vs. US BANK NATIONAL | Occidental vs. Bank of America | Occidental vs. GE Aerospace |
| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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