Correlation Between JPMORGAN and Wendys
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By analyzing existing cross correlation between JPMORGAN CHASE 295 and The Wendys Co, you can compare the effects of market volatilities on JPMORGAN and Wendys 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 with a short position of Wendys. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMORGAN and Wendys.
Diversification Opportunities for JPMORGAN and Wendys
Good diversification
The 3 months correlation between JPMORGAN and Wendys is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding JPMORGAN CHASE 295 and The Wendys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Wendys and JPMORGAN 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 295 are associated (or correlated) with Wendys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Wendys has no effect on the direction of JPMORGAN i.e., JPMORGAN and Wendys go up and down completely randomly.
Pair Corralation between JPMORGAN and Wendys
Assuming the 90 days trading horizon JPMORGAN CHASE 295 is expected to under-perform the Wendys. But the bond apears to be less risky and, when comparing its historical volatility, JPMORGAN CHASE 295 is 4.02 times less risky than Wendys. The bond trades about -0.14 of its potential returns per unit of risk. The The Wendys Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,667 in The Wendys Co on September 12, 2024 and sell it today you would earn a total of 81.00 from holding The Wendys Co or generate 4.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JPMORGAN CHASE 295 vs. The Wendys Co
Performance |
Timeline |
JPMORGAN CHASE 295 |
The Wendys |
JPMORGAN and Wendys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMORGAN and Wendys
The main advantage of trading using opposite JPMORGAN and Wendys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMORGAN position performs unexpectedly, Wendys 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 Wendys will offset losses from the drop in Wendys' long position.JPMORGAN vs. The Wendys Co | JPMORGAN vs. Rave Restaurant Group | JPMORGAN vs. Keurig Dr Pepper | JPMORGAN vs. RCI Hospitality 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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