Correlation Between JPMorgan Chase and Sendero Resources

Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Sendero Resources 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 Sendero Resources 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 Sendero Resources Corp, you can compare the effects of market volatilities on JPMorgan Chase and Sendero Resources 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 Sendero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Sendero Resources.

Diversification Opportunities for JPMorgan Chase and Sendero Resources

-0.78

Correlation Coefficient

JPMorgan Chase  Sendero Resources

Pay attention - limited upside

The 3 months correlation between JPMorgan and Sendero is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Sendero Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sendero Resources Corp 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 Sendero Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sendero Resources Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Sendero Resources go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Sendero Resources

Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 0.13 times more return on investment than Sendero Resources. However, JPMorgan Chase Co is 7.71 times less risky than Sendero Resources. It trades about 0.09 of its potential returns per unit of risk. Sendero Resources Corp is currently generating about 0.0 per unit of risk. If you would invest  1,741  in JPMorgan Chase Co on September 20, 2024 and sell it today you would earn a total of  1,324  from holding JPMorgan Chase Co or generate 76.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	61.49%
Values	Daily Returns

JPMorgan Chase Co  vs.  Sendero Resources Corp

JPMorgan Chase

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sendero Resources Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sendero Resources Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Sendero Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JPMorgan Chase and Sendero Resources

The main advantage of trading using opposite JPMorgan Chase and Sendero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Sendero Resources 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 Sendero Resources will offset losses from the drop in Sendero Resources' long position.

The idea behind JPMorgan Chase Co and Sendero Resources Corp 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.