Correlation Between JPMorgan Chase and SohuCom
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and SohuCom 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 SohuCom 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 SohuCom, you can compare the effects of market volatilities on JPMorgan Chase and SohuCom 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 SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and SohuCom.
Diversification Opportunities for JPMorgan Chase and SohuCom
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMorgan and SohuCom is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom 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 SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and SohuCom go up and down completely randomly.
Pair Corralation between JPMorgan Chase and SohuCom
Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.05 times less return on investment than SohuCom. But when comparing it to its historical volatility, JPMorgan Chase Co is 2.82 times less risky than SohuCom. It trades about 0.29 of its potential returns per unit of risk. SohuCom is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 801.00 in SohuCom on January 25, 2024 and sell it today you would earn a total of 322.00 from holding SohuCom or generate 40.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JPMorgan Chase Co vs. SohuCom
Performance |
Timeline |
JPMorgan Chase |
SohuCom |
JPMorgan Chase and SohuCom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JPMorgan Chase and SohuCom
The main advantage of trading using opposite JPMorgan Chase and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom's long position.JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
SohuCom vs. i3 Interactive | SohuCom vs. Bragg Gaming Group | SohuCom vs. GameSquare Holdings | SohuCom vs. IGG Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |