Correlation Analysis Between JP Morgan and Twitter

This module allows you to analyze existing cross correlation between JP Morgan Chase Co and Twitter. You can compare the effects of market volatilities on JP Morgan and Twitter 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 JP Morgan with a short position of Twitter. See also your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and Twitter.
Horizon     30 Days    Login   to change
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Comparative Performance

JP Morgan Chase  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase Co are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Even with considerably steady technical indicators, JP Morgan is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Twitter  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively invariable forward-looking signals, Twitter is not utilizing all of its potentials. The current stock price agitation, may contribute to short term losses for the management.

JP Morgan and Twitter Volatility Contrast

 Predicted Return Density 
      Returns 

JP Morgan Chase Co  vs.  Twitter Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, JP Morgan is expected to generate 2.22 times less return on investment than Twitter. But when comparing it to its historical volatility, JP Morgan Chase Co is 1.54 times less risky than Twitter. It trades about 0.03 of its potential returns per unit of risk. Twitter is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,868  in Twitter on September 13, 2019 and sell it today you would earn a total of  168.00  from holding Twitter or generate 4.34% return on investment over 30 days.

Pair Corralation between JP Morgan and Twitter

0.03
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for JP Morgan and Twitter

JP Morgan Chase Co diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Chase Co and Twitter Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Twitter and JP Morgan 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 JP Morgan Chase Co are associated (or correlated) with Twitter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twitter has no effect on the direction of JP Morgan i.e. JP Morgan and Twitter go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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