Correlation Between JPMORGAN and PVH Corp

Can any of the company-specific risk be diversified away by investing in both JPMORGAN and PVH Corp 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 and PVH Corp 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 PVH Corp, you can compare the effects of market volatilities on JPMORGAN and PVH Corp 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 with a short position of PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMORGAN and PVH Corp.

Diversification Opportunities for JPMORGAN and PVH Corp

-0.65

Correlation Coefficient

JPMORGAN  PVH Corp

Excellent diversification

The 3 months correlation between JPMORGAN and PVH is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding JPMORGAN CHASE CO and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp and JPMORGAN 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of JPMORGAN i.e., JPMORGAN and PVH Corp go up and down completely randomly.

Pair Corralation between JPMORGAN and PVH Corp

Assuming the 90 days trading horizon JPMORGAN CHASE CO is expected to generate 0.14 times more return on investment than PVH Corp. However, JPMORGAN CHASE CO is 7.34 times less risky than PVH Corp. It trades about 0.13 of its potential returns per unit of risk. PVH Corp is currently generating about -0.35 per unit of risk. If you would invest  8,571  in JPMORGAN CHASE CO on December 23, 2024 and sell it today you would earn a total of  217.00  from holding JPMORGAN CHASE CO or generate 2.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

JPMORGAN CHASE CO  vs.  PVH Corp

JPMORGAN CHASE CO

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMORGAN CHASE CO are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, JPMORGAN is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

PVH Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days PVH Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with JPMORGAN and PVH Corp

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

The idea behind JPMORGAN CHASE CO and PVH 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.