Correlation Between JPMorgan Chase and Pollard Banknote
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Pollard Banknote 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 JPMorgan Chase and Pollard Banknote into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and Pollard Banknote Limited, you can compare the effects of market volatilities on JPMorgan Chase and Pollard Banknote 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 JPMorgan Chase with a short position of Pollard Banknote. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Pollard Banknote.
Diversification Opportunities for JPMorgan Chase and Pollard Banknote
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Pollard is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Pollard Banknote Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollard Banknote and JPMorgan Chase 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 JPMorgan Chase Co are associated (or correlated) with Pollard Banknote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollard Banknote has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Pollard Banknote go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Pollard Banknote
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 0.51 times more return on investment than Pollard Banknote. However, JPMorgan Chase Co is 1.94 times less risky than Pollard Banknote. It trades about 0.09 of its potential returns per unit of risk. Pollard Banknote Limited is currently generating about 0.04 per unit of risk. If you would invest 1,754 in JPMorgan Chase Co on September 24, 2024 and sell it today you would earn a total of 1,414 from holding JPMorgan Chase Co or generate 80.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
JPMorgan Chase Co vs. Pollard Banknote Limited
Performance |
Timeline |
JPMorgan Chase |
Pollard Banknote |
JPMorgan Chase and Pollard Banknote Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Chase and Pollard Banknote
The main advantage of trading using opposite JPMorgan Chase and Pollard Banknote positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Pollard Banknote 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 Pollard Banknote will offset losses from the drop in Pollard Banknote's long position.JPMorgan Chase vs. Gatos Silver | JPMorgan Chase vs. Summa Silver Corp | JPMorgan Chase vs. SalesforceCom CDR | JPMorgan Chase vs. Metalero Mining Corp |
Pollard Banknote vs. JPMorgan Chase Co | Pollard Banknote vs. Toronto Dominion Bank | Pollard Banknote vs. Royal Bank of | Pollard Banknote vs. Royal Bank of |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |