Correlation Between Bancfirst Corp and JP Morgan

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bancfirst Corp and JP Morgan 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 Bancfirst Corp and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bancfirst Corp and JP Morgan Chase, you can compare the effects of market volatilities on Bancfirst Corp and JP Morgan 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 Bancfirst Corp with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancfirst Corp and JP Morgan.

Diversification Opportunities for Bancfirst Corp and JP Morgan

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Bancfirst and JP Morgan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bancfirst Corp and JP Morgan Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Chase and Bancfirst Corp 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 Bancfirst Corp are associated (or correlated) with JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Chase has no effect on the direction of Bancfirst Corp i.e., Bancfirst Corp and JP Morgan go up and down completely randomly.

Pair Corralation between Bancfirst Corp and JP Morgan

Given the investment horizon of 90 days Bancfirst Corp is expected to generate 1.2 times more return on investment than JP Morgan. However, Bancfirst Corp is 1.2 times more volatile than JP Morgan Chase. It trades about 0.1 of its potential returns per unit of risk. JP Morgan Chase is currently generating about 0.04 per unit of risk. If you would invest  4,423  in Bancfirst Corp on May 15, 2022 and sell it today you would earn a total of  7,177  from holding Bancfirst Corp or generate 162.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bancfirst Corp  vs.  JP Morgan Chase

 Performance (%) 
       Timeline  
Bancfirst Corp 
Bancfirst Performance
20 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bancfirst Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Bancfirst Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bancfirst Price Channel

JP Morgan Chase 
JP Morgan Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase are ranked lower than 3 (%) 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 new stock price chaos, may contribute to medium-term losses for the stakeholders.

JP Morgan Price Channel

Bancfirst Corp and JP Morgan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bancfirst Corp and JP Morgan

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

Bancfirst Corp

Pair trading matchups for Bancfirst Corp

The idea behind Bancfirst Corp and JP Morgan Chase 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go