Correlation Between JPMorgan Chase and Nexoptic Technology

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

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

Diversification Opportunities for JPMorgan Chase and Nexoptic Technology

-0.49

Correlation Coefficient

JPMorgan Chase  Nexoptic Technology

Very good diversification

The 3 months correlation between JPMorgan and Nexoptic is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Nexoptic Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexoptic Technology Corp and JPMorgan Chase 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 JPMorgan Chase Co are associated (or correlated) with Nexoptic Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexoptic Technology Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Nexoptic Technology go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Nexoptic Technology

If you would invest  2,621  in JPMorgan Chase Co on March 9, 2024 and sell it today you would earn a total of  57.00  from holding JPMorgan Chase Co or generate 2.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

JPMorgan Chase Co  vs.  Nexoptic Technology Corp

JPMorgan Chase

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Nexoptic Technology Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nexoptic Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in July 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with JPMorgan Chase and Nexoptic Technology

The main advantage of trading using opposite JPMorgan Chase and Nexoptic Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Nexoptic Technology 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 Nexoptic Technology will offset losses from the drop in Nexoptic Technology's long position.

The idea behind JPMorgan Chase Co and Nexoptic Technology Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.