Correlation Between JPMorgan Chase and Bank of NT
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Bank of NT 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 Bank of NT 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 Bank of NT, you can compare the effects of market volatilities on JPMorgan Chase and Bank of NT 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 Bank of NT. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Bank of NT.
Diversification Opportunities for JPMorgan Chase and Bank of NT
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Bank is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Bank of NT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of NT 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 Bank of NT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of NT has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Bank of NT go up and down completely randomly.
Pair Corralation between JPMorgan Chase and Bank of NT
Assuming the 90 days trading horizon JPMorgan Chase Co is expected to under-perform the Bank of NT. But the preferred stock apears to be less risky and, when comparing its historical volatility, JPMorgan Chase Co is 2.11 times less risky than Bank of NT. The preferred stock trades about -0.1 of its potential returns per unit of risk. The Bank of NT is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,750 in Bank of NT on March 17, 2025 and sell it today you would earn a total of 491.00 from holding Bank of NT or generate 13.09% 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. Bank of NT
Performance |
| Timeline |
| JPMorgan Chase |
| Bank of NT |
JPMorgan Chase and Bank of NT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and Bank of NT
The main advantage of trading using opposite JPMorgan Chase and Bank of NT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Bank of NT 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 Bank of NT will offset losses from the drop in Bank of NT's long position.| JPMorgan Chase vs. JPMorgan Chase Co | JPMorgan Chase vs. Bank of America | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. JPMorgan Chase Co |
| Bank of NT vs. PJT Partners | Bank of NT vs. National Bank Holdings | Bank of NT vs. FB Financial Corp | Bank of NT vs. Northrim BanCorp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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