In a new report, Nomura analyst Steven Chubak suggested two potential financial pair trades for investors who want to hedge against market weakness in 2016.

Trade 1: Long Goldman Sachs Group Inc GS 2.17%/Short JPMorgan Chase & Co. JPM 0.42%

Chubak sees similar downside risks for the two stocks, but believes that Goldman has significantly more upside. “We are upgrading GS as we see a better risk/reward skew vs. JPM,” he explained.

In the report, Nomura upgraded Goldman from Neutral to Buy and downgraded JPMorgan from Buy to Neutral.

Trade 2: Long Charles Schwab Corp SCHW 1.7%/Short Raymond James Financial, Inc. RJF 1.68%

Chubak justified…

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