Correlation Between Farmers National and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Farmers National 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 Farmers National and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmers National Banc and JPMorgan Chase Co, you can compare the effects of market volatilities on Farmers National 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 Farmers National with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmers National and JPMorgan Chase.
Diversification Opportunities for Farmers National and JPMorgan Chase
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Farmers and JPMorgan is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Farmers National Banc and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Farmers National 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 Farmers National Banc 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 Farmers National i.e., Farmers National and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Farmers National and JPMorgan Chase
Given the investment horizon of 90 days Farmers National Banc is expected to under-perform the JPMorgan Chase. In addition to that, Farmers National is 1.33 times more volatile than JPMorgan Chase Co. It trades about -0.07 of its total potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.11 per unit of volatility. If you would invest 24,498 in JPMorgan Chase Co on December 1, 2024 and sell it today you would earn a total of 1,967 from holding JPMorgan Chase Co or generate 8.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Farmers National Banc vs. JPMorgan Chase Co
Performance |
Timeline |
Farmers National Banc |
JPMorgan Chase |
Farmers National and JPMorgan Chase Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Farmers National and JPMorgan Chase
The main advantage of trading using opposite Farmers National and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmers National 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.Farmers National vs. Home Federal Bancorp | Farmers National vs. First Financial Northwest | Farmers National vs. First Northwest Bancorp | Farmers National vs. Community West Bancshares |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
CEOs Directory Screen CEOs from public companies around the world |