Correlation Between Fly Leasing and JPMorgan Chase

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Can any of the company-specific risk be diversified away by investing in both Fly Leasing and JPMorgan Chase 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 Fly Leasing and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fly Leasing Limited and JPMorgan Chase Co, you can compare the effects of market volatilities on Fly Leasing and JPMorgan Chase 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 Fly Leasing with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fly Leasing and JPMorgan Chase.

Diversification Opportunities for Fly Leasing and JPMorgan Chase

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Fly and JPMorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fly Leasing Limited and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Fly Leasing 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 Fly Leasing Limited are associated (or correlated) with JPMorgan Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Chase has no effect on the direction of Fly Leasing i.e., Fly Leasing and JPMorgan Chase go up and down completely randomly.

Pair Corralation between Fly Leasing and JPMorgan Chase

If you would invest  12,611  in JPMorgan Chase Co on December 30, 2023 and sell it today you would earn a total of  7,419  from holding JPMorgan Chase Co or generate 58.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Fly Leasing Limited  vs.  JPMorgan Chase Co

 Performance 
       Timeline  
Fly Leasing Limited 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Fly Leasing Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Fly Leasing is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JPMorgan Chase 

Risk-Adjusted Performance

24 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Fly Leasing and JPMorgan Chase Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fly Leasing and JPMorgan Chase

The main advantage of trading using opposite Fly Leasing and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fly Leasing position performs unexpectedly, JPMorgan Chase 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 JPMorgan Chase will offset losses from the drop in JPMorgan Chase's long position.
The idea behind Fly Leasing Limited and JPMorgan Chase 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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