Correlation Between JPMorgan Chase and Jackpot Digital

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

Diversification Opportunities for JPMorgan Chase and Jackpot Digital

-0.77

Correlation Coefficient

JPMorgan Chase  Jackpot Digital

Pay attention - limited upside

The 3 months correlation between JPMorgan and Jackpot is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Jackpot Digital go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Jackpot Digital

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.02 times less return on investment than Jackpot Digital. But when comparing it to its historical volatility, JPMorgan Chase Co is 4.43 times less risky than Jackpot Digital. It trades about 0.11 of its potential returns per unit of risk. Jackpot Digital is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Jackpot Digital on September 10, 2024 and sell it today you would lose (0.30) from holding Jackpot Digital or give up 6.0% of portfolio value over 90 days.

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

JPMorgan Chase Co  vs.  Jackpot Digital

JPMorgan Chase

Risk-Adjusted Performance

13 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Jackpot Digital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jackpot Digital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Jackpot Digital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JPMorgan Chase and Jackpot Digital

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

The idea behind JPMorgan Chase Co and Jackpot Digital 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.