Correlation Between JP Morgan and Freedom Holding
Can any of the company-specific risk be diversified away by investing in both JP Morgan and Freedom Holding 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 JP Morgan and Freedom Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JMP Group LLC and Freedom Holding Corp, you can compare the effects of market volatilities on JP Morgan and Freedom Holding 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 JP Morgan with a short position of Freedom Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and Freedom Holding.
Diversification Opportunities for JP Morgan and Freedom Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JMP and Freedom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JMP Group LLC and Freedom Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Holding Corp and JP Morgan 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 JMP Group LLC are associated (or correlated) with Freedom Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Holding Corp has no effect on the direction of JP Morgan i.e., JP Morgan and Freedom Holding go up and down completely randomly.
Pair Corralation between JP Morgan and Freedom Holding
If you would invest (100.00) in JMP Group LLC on January 18, 2024 and sell it today you would earn a total of 100.00 from holding JMP Group LLC or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
JMP Group LLC vs. Freedom Holding Corp
Performance |
Timeline |
JMP Group LLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freedom Holding Corp |
JP Morgan and Freedom Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JP Morgan and Freedom Holding
The main advantage of trading using opposite JP Morgan and Freedom Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JP Morgan position performs unexpectedly, Freedom Holding 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 Freedom Holding will offset losses from the drop in Freedom Holding's long position.JP Morgan vs. NeogamesSA | JP Morgan vs. Rand Capital Corp | JP Morgan vs. Bluerock Homes Trust | JP Morgan vs. Pyrophyte Acquisition Corp |
Freedom Holding vs. JPMorgan Chase Co | Freedom Holding vs. Wells Fargo | Freedom Holding vs. Citigroup | Freedom Holding vs. American Express |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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