Correlation Between JPMorgan Chase and Takung Art

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

Diversification Opportunities for JPMorgan Chase and Takung Art

-0.91

Correlation Coefficient

JPMorgan Chase  Takung Art

Pay attention - limited upside

The 3 months correlation between JPMorgan and Takung is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Takung Art Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takung Art 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 Takung Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takung Art has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Takung Art go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Takung Art

If you would invest  20,308  in JPMorgan Chase Co on September 13, 2024 and sell it today you would earn a total of  4,045  from holding JPMorgan Chase Co or generate 19.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

JPMorgan Chase Co  vs.  Takung Art Co

JPMorgan Chase

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Takung Art

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Takung Art Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Takung Art is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with JPMorgan Chase and Takung Art

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

The idea behind JPMorgan Chase Co and Takung Art Co 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 Transaction History module to view history of all your transactions and understand their impact on performance.