Correlation Between CIMB Group and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both CIMB Group and JPMorgan Chase 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 CIMB Group and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIMB Group Holdings and JPMorgan Chase Co, you can compare the effects of market volatilities on CIMB Group and JPMorgan Chase 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 CIMB Group with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMB Group and JPMorgan Chase.
Diversification Opportunities for CIMB Group and JPMorgan Chase
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIMB and JPMorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIMB Group Holdings and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and CIMB Group 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 CIMB Group Holdings are associated (or correlated) with JPMorgan Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Chase has no effect on the direction of CIMB Group i.e., CIMB Group and JPMorgan Chase go up and down completely randomly.
Pair Corralation between CIMB Group and JPMorgan Chase
If you would invest 12,581 in JPMorgan Chase Co on January 26, 2024 and sell it today you would earn a total of 6,727 from holding JPMorgan Chase Co or generate 53.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.53% |
| Values | Daily Returns |
CIMB Group Holdings vs. JPMorgan Chase Co
Performance |
| Timeline |
| CIMB Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JPMorgan Chase |
CIMB Group and JPMorgan Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMB Group and JPMorgan Chase
The main advantage of trading using opposite CIMB Group and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMB Group position performs unexpectedly, JPMorgan Chase 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 JPMorgan Chase will offset losses from the drop in JPMorgan Chase's long position.| CIMB Group vs. Kasikornbank Public Co | CIMB Group vs. Turkiye Garanti Bankasi | CIMB Group vs. Hang Seng Bank | CIMB Group vs. PT Bank Rakyat |
| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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