Correlation Between JPMorgan Chase and First Quantum
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and First Quantum 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 First Quantum 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 First Quantum Minerals, you can compare the effects of market volatilities on JPMorgan Chase and First Quantum 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 First Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and First Quantum.
Diversification Opportunities for JPMorgan Chase and First Quantum
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JPMorgan and First is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and First Quantum Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Quantum Minerals 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 First Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Quantum Minerals has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and First Quantum go up and down completely randomly.
Pair Corralation between JPMorgan Chase and First Quantum
Assuming the 90 days trading horizon JPMorgan Chase is expected to generate 1.26 times less return on investment than First Quantum. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.67 times less risky than First Quantum. It trades about 0.28 of its potential returns per unit of risk. First Quantum Minerals is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,917 in First Quantum Minerals on April 25, 2025 and sell it today you would earn a total of 517.00 from holding First Quantum Minerals or generate 26.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
JPMorgan Chase Co vs. First Quantum Minerals
Performance |
Timeline |
JPMorgan Chase |
First Quantum Minerals |
JPMorgan Chase and First Quantum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Chase and First Quantum
The main advantage of trading using opposite JPMorgan Chase and First Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, First Quantum 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 First Quantum will offset losses from the drop in First Quantum's long position.JPMorgan Chase vs. Evertz Technologies Limited | JPMorgan Chase vs. California Nanotechnologies Corp | JPMorgan Chase vs. Falcon Energy Materials | JPMorgan Chase vs. Birchtech Corp |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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