Correlation Between Jpmorgan Smartretirement and American Funds
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Smartretirement and American Funds 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 Smartretirement and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Smartretirement 2035 and American Funds 2035, you can compare the effects of market volatilities on Jpmorgan Smartretirement and American Funds 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 Smartretirement with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and American Funds.
Diversification Opportunities for Jpmorgan Smartretirement and American Funds
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jpmorgan and American is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement 2035 and American Funds 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2035 and Jpmorgan Smartretirement 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 Smartretirement 2035 are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2035 has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and American Funds go up and down completely randomly.
Pair Corralation between Jpmorgan Smartretirement and American Funds
Assuming the 90 days horizon Jpmorgan Smartretirement is expected to generate 1.76 times less return on investment than American Funds. But when comparing it to its historical volatility, Jpmorgan Smartretirement 2035 is 1.04 times less risky than American Funds. It trades about 0.02 of its potential returns per unit of risk. American Funds 2035 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,791 in American Funds 2035 on January 19, 2024 and sell it today you would earn a total of 9.00 from holding American Funds 2035 or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Smartretirement 2035 vs. American Funds 2035
Performance |
| Timeline |
| Jpmorgan Smartretirement |
| American Funds 2035 |
Jpmorgan Smartretirement and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Smartretirement and American Funds
The main advantage of trading using opposite Jpmorgan Smartretirement and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Jpmorgan Smartretirement vs. American Funds 2035 | Jpmorgan Smartretirement vs. American Funds 2035 | Jpmorgan Smartretirement vs. American Funds 2035 | Jpmorgan Smartretirement vs. HUMANA INC |
| American Funds vs. Fidelity Money Market | American Funds vs. John Hancock Money | American Funds vs. Franklin Government Money | American Funds vs. General Money Market |
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 the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |