Correlation Between JPMorgan Chase and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Barclays Capital 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 Barclays Capital 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 Barclays Capital, you can compare the effects of market volatilities on JPMorgan Chase and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Barclays Capital.
Diversification Opportunities for JPMorgan Chase and Barclays Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JPMorgan and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Barclays Capital go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Barclays Capital
If you would invest 24,215 in JPMorgan Chase Co on December 4, 2024 and sell it today you would earn a total of 808.00 from holding JPMorgan Chase Co or generate 3.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
JPMorgan Chase Co vs. Barclays Capital
Performance |
Timeline |
JPMorgan Chase |
Barclays Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
JPMorgan Chase and Barclays Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Chase and Barclays Capital
The main advantage of trading using opposite JPMorgan Chase and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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