Correlation Between Cheche Group and JPMORGAN

Can any of the company-specific risk be diversified away by investing in both Cheche Group and JPMORGAN 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 Cheche Group and JPMORGAN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cheche Group Class and JPMORGAN CHASE CO, you can compare the effects of market volatilities on Cheche Group 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 Cheche Group with a short position of JPMORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and JPMORGAN.

Diversification Opportunities for Cheche Group and JPMORGAN

-0.44

Correlation Coefficient

Cheche Group  JPMORGAN

Very good diversification

The 3 months correlation between Cheche and JPMORGAN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and JPMORGAN CHASE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN CHASE CO and Cheche Group 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 Cheche Group Class 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 CO has no effect on the direction of Cheche Group i.e., Cheche Group and JPMORGAN go up and down completely randomly.

Pair Corralation between Cheche Group and JPMORGAN

Considering the 90-day investment horizon Cheche Group Class is expected to generate 6.96 times more return on investment than JPMORGAN. However, Cheche Group is 6.96 times more volatile than JPMORGAN CHASE CO. It trades about 0.04 of its potential returns per unit of risk. JPMORGAN CHASE CO is currently generating about 0.01 per unit of risk. If you would invest  84.00  in Cheche Group Class on October 11, 2024 and sell it today you would earn a total of  4.00  from holding Cheche Group Class or generate 4.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Cheche Group Class  vs.  JPMORGAN CHASE CO

Cheche Group Class

Risk-Adjusted Performance

3 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cheche Group Class are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Cheche Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

JPMORGAN CHASE CO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JPMORGAN CHASE CO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, JPMORGAN is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cheche Group and JPMORGAN

The main advantage of trading using opposite Cheche Group and JPMORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group 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.

The idea behind Cheche Group Class and JPMORGAN CHASE CO pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.