Correlation Between JP Morgan and Credit Suisse

By analyzing existing cross correlation between JP Morgan Chase and Credit Suisse Group, you can compare the effects of market volatilities on JP Morgan and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of JP Morgan and Credit Suisse.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both JP Morgan and Credit Suisse 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 Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for JP Morgan and Credit Suisse

0.59
  Correlation Coefficient
JP Morgan Chase
Credit Suisse Group

Very weak diversification

The 3 months correlation between JP Morgan and Credit is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Chase and Credit Suisse Group in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group 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 JP Morgan Chase are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Group has no effect on the direction of JP Morgan i.e., JP Morgan and Credit Suisse go up and down completely randomly.

Pair Corralation between JP Morgan and Credit Suisse

Considering the 90-day investment horizon JP Morgan Chase is expected to generate 0.54 times more return on investment than Credit Suisse. However, JP Morgan Chase is 1.86 times less risky than Credit Suisse. It trades about -0.14 of its potential returns per unit of risk. Credit Suisse Group is currently generating about -0.25 per unit of risk. If you would invest  16,044  in JP Morgan Chase on June 29, 2021 and sell it today you would lose (453.00)  from holding JP Morgan Chase or give up 2.82% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

JP Morgan Chase  vs.  Credit Suisse Group

 Performance (%) 
      Timeline 
JP Morgan Chase 
 JP Morgan Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, JP Morgan is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

JP Morgan Price Channel

Credit Suisse Group 
 Credit Performance
0 of 100
Over the last 90 days Credit Suisse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Credit Price Channel

JP Morgan and Credit Suisse Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with JP Morgan and Credit Suisse

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

JP Morgan Chase

Pair trading matchups for JP Morgan

The idea behind JP Morgan Chase and Credit Suisse Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go