Correlation Between JPMorgan Chase and APPLE

Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and APPLE 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 APPLE 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 APPLE INC 335, you can compare the effects of market volatilities on JPMorgan Chase and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and APPLE.

Diversification Opportunities for JPMorgan Chase and APPLE

-0.59

Correlation Coefficient

JPMorgan Chase  APPLE

Excellent diversification

The 3 months correlation between JPMorgan and APPLE is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and APPLE INC 335 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 335 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 335 has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and APPLE go up and down completely randomly.

Pair Corralation between JPMorgan Chase and APPLE

Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.91 times more return on investment than APPLE. However, JPMorgan Chase is 3.91 times more volatile than APPLE INC 335. It trades about 0.06 of its potential returns per unit of risk. APPLE INC 335 is currently generating about -0.11 per unit of risk. If you would invest  24,999  in JPMorgan Chase Co on March 5, 2025 and sell it today you would earn a total of  1,628  from holding JPMorgan Chase Co or generate 6.51% return on investment over 90 days.

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

JPMorgan Chase Co  vs.  APPLE INC 335

JPMorgan Chase

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in July 2025.

APPLE INC 335

Risk-Adjusted Performance

Very Weak

Over the last 90 days APPLE INC 335 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, APPLE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with JPMorgan Chase and APPLE

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

The idea behind JPMorgan Chase Co and APPLE INC 335 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..