Correlation Between JPMorgan Chase and SPDR Portfolio
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and SPDR Portfolio 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 SPDR Portfolio 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 SPDR Portfolio SP, you can compare the effects of market volatilities on JPMorgan Chase and SPDR Portfolio 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 SPDR Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and SPDR Portfolio.
Diversification Opportunities for JPMorgan Chase and SPDR Portfolio
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and SPDR is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and SPDR Portfolio SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio SP 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 SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio SP has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and SPDR Portfolio go up and down completely randomly.
Pair Corralation between JPMorgan Chase and SPDR Portfolio
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 1.34 times more return on investment than SPDR Portfolio. However, JPMorgan Chase is 1.34 times more volatile than SPDR Portfolio SP. It trades about 0.2 of its potential returns per unit of risk. SPDR Portfolio SP is currently generating about 0.14 per unit of risk. If you would invest 26,499 in JPMorgan Chase Co on June 3, 2025 and sell it today you would earn a total of 3,643 from holding JPMorgan Chase Co or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. SPDR Portfolio SP
Performance |
| Timeline |
| JPMorgan Chase |
| SPDR Portfolio SP |
JPMorgan Chase and SPDR Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and SPDR Portfolio
The main advantage of trading using opposite JPMorgan Chase and SPDR Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, SPDR Portfolio 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 SPDR Portfolio will offset losses from the drop in SPDR Portfolio's long position.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| SPDR Portfolio vs. Invesco SP 500 | SPDR Portfolio vs. iShares Core High | SPDR Portfolio vs. SPDR Portfolio SP | SPDR Portfolio vs. Schwab Dividend Equity |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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