Correlation Between JPMorgan Chase and BCE

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

Diversification Opportunities for JPMorgan Chase and BCE

0.92

Correlation Coefficient

JPMorgan Chase  BCE

Almost no diversification

The 3 months correlation between JPMorgan and BCE is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and BCE Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc Pref 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 BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc Pref has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and BCE go up and down completely randomly.

Pair Corralation between JPMorgan Chase and BCE

Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 1.76 times more return on investment than BCE. However, JPMorgan Chase is 1.76 times more volatile than BCE Inc Pref. It trades about 0.25 of its potential returns per unit of risk. BCE Inc Pref is currently generating about 0.4 per unit of risk. If you would invest  3,207  in JPMorgan Chase Co on April 24, 2025 and sell it today you would earn a total of  607.00  from holding JPMorgan Chase Co or generate 18.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

JPMorgan Chase Co  vs.  BCE Inc Pref

JPMorgan Chase

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

BCE Inc Pref

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in BCE Inc Pref are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, BCE sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JPMorgan Chase and BCE

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

The idea behind JPMorgan Chase Co and BCE Inc Pref 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.