Correlation Between JPMorgan Chase and ATAI Life

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

Diversification Opportunities for JPMorgan Chase and ATAI Life

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between JPMorgan and ATAI Life is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ATAI Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATAI Life Sciences 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 ATAI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATAI Life Sciences has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ATAI Life go up and down completely randomly.

Pair Corralation between JPMorgan Chase and ATAI Life

Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 0.34 times more return on investment than ATAI Life. However, JPMorgan Chase Co is 2.92 times less risky than ATAI Life. It trades about 0.03 of its potential returns per unit of risk. ATAI Life Sciences is currently generating about -0.08 per unit of risk. If you would invest  11,261  in JPMorgan Chase Co on September 9, 2022 and sell it today you would earn a total of  1,889  from holding JPMorgan Chase Co or generate 16.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy75.0%
ValuesDaily Returns

JPMorgan Chase Co  vs.  ATAI Life Sciences

 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 unsteady basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in January 2023.

JPMorgan Price Channel

ATAI Life Sciences 
ATAI Life Performance
0 of 100
Over the last 90 days ATAI Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ATAI Life Price Channel

JPMorgan Chase and ATAI Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JPMorgan Chase and ATAI Life

The main advantage of trading using opposite JPMorgan Chase and ATAI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ATAI Life 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 ATAI Life will offset losses from the drop in ATAI Life's long position.
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The idea behind JPMorgan Chase Co and ATAI Life Sciences 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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