Correlation Between JPMorgan Chase and Nano One

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

Diversification Opportunities for JPMorgan Chase and Nano One

-0.53

Correlation Coefficient

JPMorgan Chase  Nano One

Excellent diversification

The 3 months correlation between JPMorgan and Nano is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Nano One Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano One Materials 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 Nano One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano One Materials has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Nano One go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Nano One

Assuming the 90 days trading horizon JPMorgan Chase Co is expected to generate 0.48 times more return on investment than Nano One. However, JPMorgan Chase Co is 2.08 times less risky than Nano One. It trades about 0.12 of its potential returns per unit of risk. Nano One Materials is currently generating about -0.06 per unit of risk. If you would invest  2,790  in JPMorgan Chase Co on September 27, 2024 and sell it today you would earn a total of  427.00  from holding JPMorgan Chase Co or generate 15.3% 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.  Nano One Materials

JPMorgan Chase

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Nano One Materials

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nano One Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with JPMorgan Chase and Nano One

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

The idea behind JPMorgan Chase Co and Nano One Materials 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.