Correlation Between Advance Gold and JPMorgan Chase

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

Diversification Opportunities for Advance Gold and JPMorgan Chase

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Advance and JPMorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance Gold Corp and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Advance Gold 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 Advance Gold Corp 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 Advance Gold i.e., Advance Gold and JPMorgan Chase go up and down completely randomly.

Pair Corralation between Advance Gold and JPMorgan Chase

Assuming the 90 days horizon Advance Gold Corp is expected to under-perform the JPMorgan Chase. In addition to that, Advance Gold is 3.18 times more volatile than JPMorgan Chase Co. It trades about -0.11 of its total potential returns per unit of risk. JPMorgan Chase Co is currently generating about 0.13 per unit of volatility. If you would invest  14,282  in JPMorgan Chase Co on March 27, 2024 and sell it today you would earn a total of  5,606  from holding JPMorgan Chase Co or generate 39.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Advance Gold Corp  vs.  JPMorgan Chase Co

 Performance 
       Timeline  
Advance Gold Corp 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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Over the last 90 days JPMorgan Chase Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, JPMorgan Chase is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Advance Gold and JPMorgan Chase Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Advance Gold and JPMorgan Chase

The main advantage of trading using opposite Advance Gold and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Gold 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 Advance Gold Corp 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.
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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