Correlation Between JPMorgan Chase and American Tower

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Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and American Tower 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 American Tower 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 American Tower Corp, you can compare the effects of market volatilities on JPMorgan Chase and American Tower 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 American Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and American Tower.

Diversification Opportunities for JPMorgan Chase and American Tower

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between JPMorgan and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and American Tower Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Tower 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 American Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Tower Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and American Tower go up and down completely randomly.

Pair Corralation between JPMorgan Chase and American Tower

Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.98 times more return on investment than American Tower. However, JPMorgan Chase Co is 1.02 times less risky than American Tower. It trades about 0.03 of its potential returns per unit of risk. American Tower Corp is currently generating about 0.01 per unit of risk. If you would invest  11,317  in JPMorgan Chase Co on September 8, 2022 and sell it today you would earn a total of  1,833  from holding JPMorgan Chase Co or generate 16.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

JPMorgan Chase Co  vs.  American Tower Corp

 Performance (%) 
       Timeline  
JPMorgan Chase 
JPMorgan Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in January 2023.

JPMorgan Price Channel

American Tower Corp 
American Performance
0 of 100
Over the last 90 days American Tower Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in January 2023. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

American Price Channel

JPMorgan Chase and American Tower Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JPMorgan Chase and American Tower

The main advantage of trading using opposite JPMorgan Chase and American Tower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, American Tower 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 American Tower will offset losses from the drop in American Tower's long position.
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The idea behind JPMorgan Chase Co and American Tower 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.
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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