Correlation Between Horizon Bancorp and JPMorgan Chase
Can any of the company-specific risk be diversified away by investing in both Horizon Bancorp 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 Horizon Bancorp and JPMorgan Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Bancorp and JPMorgan Chase Co, you can compare the effects of market volatilities on Horizon Bancorp 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 Horizon Bancorp with a short position of JPMorgan Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Bancorp and JPMorgan Chase.
Diversification Opportunities for Horizon Bancorp and JPMorgan Chase
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Horizon and JPMorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Bancorp and JPMorgan Chase Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Chase and Horizon Bancorp 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 Horizon Bancorp 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 Horizon Bancorp i.e., Horizon Bancorp and JPMorgan Chase go up and down completely randomly.
Pair Corralation between Horizon Bancorp and JPMorgan Chase
If you would invest 19,369 in JPMorgan Chase Co on January 25, 2024 and sell it today you would lose (61.00) from holding JPMorgan Chase Co or give up 0.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Horizon Bancorp vs. JPMorgan Chase Co
Performance |
Timeline |
Horizon Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JPMorgan Chase |
Horizon Bancorp and JPMorgan Chase Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Horizon Bancorp and JPMorgan Chase
The main advantage of trading using opposite Horizon Bancorp and JPMorgan Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Bancorp 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.Horizon Bancorp vs. Eldorado Gold Corp | Horizon Bancorp vs. Ambev SA ADR | Horizon Bancorp vs. East Africa Metals | Horizon Bancorp vs. Barrick Gold Corp |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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