Two Equities Correlation Analysis
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SRJPX
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Jpmorgan Smartretirement and NYSE Composite
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Jpmorgan and NYSE is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement 2035 and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and NYSE Composite go up and down completely randomly.
Pair Corralation between Jpmorgan Smartretirement and NYSE Composite
Assuming the 90 days horizon Jpmorgan Smartretirement 2035 is expected to under-perform the NYSE Composite. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jpmorgan Smartretirement 2035 is 1.3 times less risky than NYSE Composite. The mutual fund trades about -0.18 of its potential returns per unit of risk. The NYSE Composite is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,807,715 in NYSE Composite on January 24, 2024 and sell it today you would lose (28,439) from holding NYSE Composite or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Smartretirement 2035 vs. NYSE Composite
Performance |
| Timeline |
Jpmorgan Smartretirement and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Jpmorgan Smartretirement 2035
Pair trading matchups for Jpmorgan Smartretirement
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Jpmorgan Smartretirement and NYSE Composite
The main advantage of trading using opposite Jpmorgan Smartretirement and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.The idea behind Jpmorgan Smartretirement 2035 and NYSE Composite 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.| NYSE Composite vs. The Wendys Co | NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Rave Restaurant Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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