Correlation Between JPMorgan Chase and ChampionX

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

Diversification Opportunities for JPMorgan Chase and ChampionX

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between JPMorgan and ChampionX is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and ChampionX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChampionX 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 ChampionX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChampionX has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and ChampionX go up and down completely randomly.

Pair Corralation between JPMorgan Chase and ChampionX

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 2.15 times less return on investment than ChampionX. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.82 times less risky than ChampionX. It trades about 0.15 of its potential returns per unit of risk. ChampionX is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,134  in ChampionX on September 4, 2022 and sell it today you would earn a total of  959.00  from holding ChampionX or generate 44.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.44%
ValuesDaily Returns

JPMorgan Chase Co  vs.  ChampionX

 Performance (%) 
       Timeline  
JPMorgan Chase 
JPMorgan Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 11 (%) 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

ChampionX 
ChampionX Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in ChampionX are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly sluggish technical indicators, ChampionX showed solid returns over the last few months and may actually be approaching a breakup point.

ChampionX Price Channel

JPMorgan Chase and ChampionX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JPMorgan Chase and ChampionX

The main advantage of trading using opposite JPMorgan Chase and ChampionX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, ChampionX 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 ChampionX will offset losses from the drop in ChampionX's long position.
JPMorgan Chase vs. East West Bancorp
The idea behind JPMorgan Chase Co and ChampionX 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.
ChampionX vs. Dmc Global
ChampionX vs. Now Inc
ChampionX vs. Enerflex
ChampionX vs. Flotek Industries
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go