Correlation Between Enova Systems and JPMorgan Chase

Can any of the company-specific risk be diversified away by investing in both Enova Systems 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 Enova Systems and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enova Systems OTC and JPMorgan Chase Co, you can compare the effects of market volatilities on Enova Systems 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 Enova Systems with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova Systems and JPMorgan Chase.

Diversification Opportunities for Enova Systems and JPMorgan Chase

0.0

Correlation Coefficient

Enova Systems  JPMorgan Chase

Pay attention - limited upside

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

Pair Corralation between Enova Systems and JPMorgan Chase

If you would invest  17,128  in JPMorgan Chase Co on January 26, 2024 and sell it today you would earn a total of  2,180  from holding JPMorgan Chase Co or generate 12.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Enova Systems OTC  vs.  JPMorgan Chase Co

Enova Systems OTC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enova Systems OTC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Enova Systems is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

JPMorgan Chase

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enova Systems and JPMorgan Chase

The main advantage of trading using opposite Enova Systems and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova Systems 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 Enova Systems OTC 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.