Correlation Between JPMorgan Chase and EAGLE
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By analyzing existing cross correlation between JPMorgan Chase Co and EAGLE MATERIALS INC, you can compare the effects of market volatilities on JPMorgan Chase and EAGLE 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 EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and EAGLE.
Diversification Opportunities for JPMorgan Chase and EAGLE
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JPMorgan and EAGLE is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and EAGLE MATERIALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS INC 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 EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS INC has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and EAGLE go up and down completely randomly.
Pair Corralation between JPMorgan Chase and EAGLE
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 4.2 times more return on investment than EAGLE. However, JPMorgan Chase is 4.2 times more volatile than EAGLE MATERIALS INC. It trades about 0.16 of its potential returns per unit of risk. EAGLE MATERIALS INC is currently generating about -0.14 per unit of risk. 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 | Weak |
Accuracy | 88.89% |
Values | Daily Returns |
JPMorgan Chase Co vs. EAGLE MATERIALS INC
Performance |
Timeline |
JPMorgan Chase |
EAGLE MATERIALS INC |
JPMorgan Chase and EAGLE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Chase and EAGLE
The main advantage of trading using opposite JPMorgan Chase and EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, EAGLE 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 EAGLE will offset losses from the drop in EAGLE's long position.JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Nu Holdings | JPMorgan Chase vs. HSBC Holdings PLC | JPMorgan Chase vs. Bank of Montreal |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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