Correlation Between Scotts and JPMorgan Chase
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By analyzing existing cross correlation between Scotts Miracle Gro 525 and JPMorgan Chase Co, you can compare the effects of market volatilities on Scotts 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 Scotts with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scotts and JPMorgan Chase.
Diversification Opportunities for Scotts and JPMorgan Chase
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scotts and JPMorgan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Scotts Miracle Gro 525 and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Scotts 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 Scotts Miracle Gro 525 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 Scotts i.e., Scotts and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Scotts and JPMorgan Chase
Assuming the 90 days trading horizon Scotts Miracle Gro 525 is expected to under-perform the JPMorgan Chase. But the bond apears to be less risky and, when comparing its historical volatility, Scotts Miracle Gro 525 is 3.61 times less risky than JPMorgan Chase. The bond trades about -0.03 of its potential returns per unit of risk. The JPMorgan Chase Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 22,086 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 2,911 from holding JPMorgan Chase Co or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.65% |
| Values | Daily Returns |
Scotts Miracle Gro 525 vs. JPMorgan Chase Co
Performance |
| Timeline |
| Scotts Miracle Gro |
| JPMorgan Chase |
Scotts and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scotts and JPMorgan Chase
The main advantage of trading using opposite Scotts and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scotts 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.| Scotts vs. The Coca Cola | Scotts vs. JPMorgan Chase Co | Scotts vs. Dupont De Nemours | Scotts vs. Alcoa 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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