Correlation Between JPMorgan Chase and Bondbloxx ETF

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

Diversification Opportunities for JPMorgan Chase and Bondbloxx ETF

-0.08

Correlation Coefficient

JPMorgan Chase  Bondbloxx ETF

Good diversification

The 3 months correlation between JPMorgan and Bondbloxx is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust 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 Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Bondbloxx ETF

Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 64.81 times more return on investment than Bondbloxx ETF. However, JPMorgan Chase is 64.81 times more volatile than Bondbloxx ETF Trust. It trades about 0.03 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.71 per unit of risk. If you would invest  23,809  in JPMorgan Chase Co on December 30, 2024 and sell it today you would earn a total of  476.00  from holding JPMorgan Chase Co or generate 2.0% return on investment over 90 days.

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

JPMorgan Chase Co  vs.  Bondbloxx ETF Trust

JPMorgan Chase

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 2 (%) 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.

Bondbloxx ETF Trust

Risk-Adjusted Performance

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 56 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Bondbloxx ETF is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JPMorgan Chase and Bondbloxx ETF

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

The idea behind JPMorgan Chase Co and Bondbloxx ETF Trust 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.