Correlation Between JPMorgan Chase and Ohio Variable

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

Diversification Opportunities for JPMorgan Chase and Ohio Variable

0.57

Correlation Coefficient

JPMorgan Chase  Ohio Variable

Very weak diversification

The 3 months correlation between JPMorgan and Ohio is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Ohio Variable College in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ohio Variable College 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 Ohio Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ohio Variable College has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Ohio Variable go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Ohio Variable

Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 2.37 times more return on investment than Ohio Variable. However, JPMorgan Chase is 2.37 times more volatile than Ohio Variable College. It trades about 0.1 of its potential returns per unit of risk. Ohio Variable College is currently generating about 0.09 per unit of risk. If you would invest  12,839  in JPMorgan Chase Co on October 11, 2024 and sell it today you would earn a total of  11,474  from holding JPMorgan Chase Co or generate 89.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

JPMorgan Chase Co  vs.  Ohio Variable College

JPMorgan Chase

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Ohio Variable College

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Ohio Variable College has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ohio Variable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JPMorgan Chase and Ohio Variable

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

The idea behind JPMorgan Chase Co and Ohio Variable College 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 Global Correlations module to find global opportunities by holding instruments from different markets.