Correlation Between Life Storage and JP Morgan

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

Diversification Opportunities for Life Storage and JP Morgan

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Life Storage and JP Morgan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Life Storage 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 Life Storage 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 Life Storage 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 Life Storage i.e., Life Storage and JP Morgan go up and down completely randomly.

Pair Corralation between Life Storage and JP Morgan

Considering the 90-day investment horizon Life Storage is expected to generate 1.02 times more return on investment than JP Morgan. However, Life Storage is 1.02 times more volatile than JP Morgan Chase. It trades about 0.05 of its potential returns per unit of risk. JP Morgan Chase is currently generating about 0.01 per unit of risk. If you would invest  7,954  in Life Storage on September 1, 2022 and sell it today you would earn a total of  2,795  from holding Life Storage or generate 35.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Life Storage  vs.  JP Morgan Chase

 Performance (%) 
       Timeline  
Life Storage 
Life Storage Performance
0 of 100
Over the last 90 days Life Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Life Storage Price Channel

JP Morgan Chase 
JP Morgan Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, JP Morgan revealed solid returns over the last few months and may actually be approaching a breakup point.

JP Morgan Price Channel

Life Storage and JP Morgan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Life Storage and JP Morgan

The main advantage of trading using opposite Life Storage and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Storage 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.
Life Storage vs. Duke Realty
Life Storage vs. Prologis
Life Storage vs. Extra Space Storage
Life Storage vs. Public Storage
The idea behind Life Storage 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.
JP Morgan vs. Bank Of New
JP Morgan vs. Citizens Financial Group
JP Morgan vs. Comerica
JP Morgan vs. Capital One Financial
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go