Correlation Between Agilent Technologies and JPMorgan Chase

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies 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 Agilent Technologies and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and JPMorgan Chase Co, you can compare the effects of market volatilities on Agilent Technologies 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 Agilent Technologies with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and JPMorgan Chase.

Diversification Opportunities for Agilent Technologies and JPMorgan Chase

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Agilent and JPMorgan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies i.e., Agilent Technologies and JPMorgan Chase go up and down completely randomly.

Pair Corralation between Agilent Technologies and JPMorgan Chase

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.45 times more return on investment than JPMorgan Chase. However, Agilent Technologies is 1.45 times more volatile than JPMorgan Chase Co. It trades about 0.36 of its potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.41 per unit of risk. If you would invest  13,255  in Agilent Technologies on December 29, 2023 and sell it today you would earn a total of  1,482  from holding Agilent Technologies or generate 11.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Agilent Technologies  vs.  JPMorgan Chase Co

 Performance 
       Timeline  
Agilent Technologies 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2024.
JPMorgan Chase 

Risk-Adjusted Performance

25 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Agilent Technologies and JPMorgan Chase Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agilent Technologies and JPMorgan Chase

The main advantage of trading using opposite Agilent Technologies and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies 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.
The idea behind Agilent Technologies and JPMorgan Chase Co 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Commodity Directory
Find actively traded commodities issued by global exchanges
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format