Correlation Between JPMorgan Chase and Bank of New York

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Bank of New York 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 Bank of New York 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 Bank Of New, you can compare the effects of market volatilities on JPMorgan Chase and Bank of New York 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 Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Bank of New York.

Diversification Opportunities for JPMorgan Chase and Bank of New York

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between JPMorgan and Bank of New York is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Bank Of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York 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 Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Bank of New York go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Bank of New York

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.21 times less return on investment than Bank of New York. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.09 times less risky than Bank of New York. It trades about 0.03 of its potential returns per unit of risk. Bank Of New is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,793  in Bank Of New on September 6, 2022 and sell it today you would earn a total of  729.00  from holding Bank Of New or generate 19.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.8%
ValuesDaily Returns

JPMorgan Chase Co  vs.  Bank Of New

 Performance (%) 
       Timeline  
JPMorgan Chase 
JPMorgan Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, JPMorgan Chase revealed solid returns over the last few months and may actually be approaching a breakup point.

JPMorgan Price Channel

Bank of New York 
Bank of New York Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bank Of New are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward-looking signals, Bank of New York may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Bank of New York Price Channel

JPMorgan Chase and Bank of New York Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JPMorgan Chase and Bank of New York

The main advantage of trading using opposite JPMorgan Chase and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.
JPMorgan Chase vs. East West Bancorp
The idea behind JPMorgan Chase Co and Bank Of New 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.
Bank of New York vs. Great Ajax Corp
Bank of New York vs. Ally Financial
Bank of New York vs. AGNC Investment Corp
Bank of New York vs. Arbor Realty Trust
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 CEO Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
CEO Directory
Screen CEOs from public companies around the world
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go