Correlation Between Kinross Gold and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Kinross Gold 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 Kinross Gold and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and JPMorgan Chase Co, you can compare the effects of market volatilities on Kinross Gold 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 Kinross Gold with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and JPMorgan Chase.
Diversification Opportunities for Kinross Gold and JPMorgan Chase
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinross and JPMorgan is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Kinross Gold 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 Kinross Gold 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 Kinross Gold i.e., Kinross Gold and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Kinross Gold and JPMorgan Chase
Considering the 90-day investment horizon Kinross Gold is expected to generate 2.79 times less return on investment than JPMorgan Chase. In addition to that, Kinross Gold is 1.84 times more volatile than JPMorgan Chase Co. It trades about 0.01 of its total potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.07 per unit of volatility. If you would invest 12,657 in JPMorgan Chase Co on December 29, 2023 and sell it today you would earn a total of 7,295 from holding JPMorgan Chase Co or generate 57.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kinross Gold vs. JPMorgan Chase Co
Performance |
Timeline |
Kinross Gold |
JPMorgan Chase |
Kinross Gold and JPMorgan Chase Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kinross Gold and JPMorgan Chase
The main advantage of trading using opposite Kinross Gold and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold 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.Kinross Gold vs. Chemours Co | Kinross Gold vs. Quanex Building Products | Kinross Gold vs. FutureFuel Corp | Kinross Gold vs. CF Industries Holdings |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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