Correlation Between JPMorgan Chase and Tudor Gold

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

Diversification Opportunities for JPMorgan Chase and Tudor Gold

0.17

Correlation Coefficient

JPMorgan Chase  Tudor Gold

Average diversification

The 3 months correlation between JPMorgan and Tudor is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Tudor Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tudor Gold 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 Tudor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tudor Gold Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Tudor Gold go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Tudor Gold

Considering the 90-day investment horizon JPMorgan Chase Co is expected to under-perform the Tudor Gold. But the stock apears to be less risky and, when comparing its historical volatility, JPMorgan Chase Co is 3.27 times less risky than Tudor Gold. The stock trades about -0.1 of its potential returns per unit of risk. The Tudor Gold Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  46.00  in Tudor Gold Corp on November 29, 2024 and sell it today you would lose (1.00) from holding Tudor Gold Corp or give up 2.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

JPMorgan Chase Co  vs.  Tudor Gold Corp

JPMorgan Chase

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, JPMorgan Chase is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Tudor Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tudor Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with JPMorgan Chase and Tudor Gold

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

The idea behind JPMorgan Chase Co and Tudor Gold 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.