Correlation Between Xtrackers Harvest and Jpmorgan Smartretirement*
Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and Jpmorgan Smartretirement* 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 Xtrackers Harvest and Jpmorgan Smartretirement* into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Harvest CSI and Jpmorgan Smartretirement Blend, you can compare the effects of market volatilities on Xtrackers Harvest and Jpmorgan Smartretirement* 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 Xtrackers Harvest with a short position of Jpmorgan Smartretirement*. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and Jpmorgan Smartretirement*.
Diversification Opportunities for Xtrackers Harvest and Jpmorgan Smartretirement*
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xtrackers and Jpmorgan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and Jpmorgan Smartretirement Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement* and Xtrackers Harvest 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 Xtrackers Harvest CSI are associated (or correlated) with Jpmorgan Smartretirement*. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Smartretirement* has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and Jpmorgan Smartretirement* go up and down completely randomly.
Pair Corralation between Xtrackers Harvest and Jpmorgan Smartretirement*
Given the investment horizon of 90 days Xtrackers Harvest CSI is expected to under-perform the Jpmorgan Smartretirement*. In addition to that, Xtrackers Harvest is 6.09 times more volatile than Jpmorgan Smartretirement Blend. It trades about -0.03 of its total potential returns per unit of risk. Jpmorgan Smartretirement Blend is currently generating about 0.32 per unit of volatility. If you would invest 2,669 in Jpmorgan Smartretirement Blend on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Jpmorgan Smartretirement Blend or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Harvest CSI vs. Jpmorgan Smartretirement Blend
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| Jpmorgan Smartretirement* |
Xtrackers Harvest and Jpmorgan Smartretirement* Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Harvest and Jpmorgan Smartretirement*
The main advantage of trading using opposite Xtrackers Harvest and Jpmorgan Smartretirement* positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, Jpmorgan Smartretirement* 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 Jpmorgan Smartretirement* will offset losses from the drop in Jpmorgan Smartretirement*'s long position.| Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. KraneShares Bosera MSCI |
| Jpmorgan Smartretirement* vs. Dws Government Money | Jpmorgan Smartretirement* vs. First American Funds | Jpmorgan Smartretirement* vs. Wt Mutual Fund | Jpmorgan Smartretirement* vs. Janus Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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