Correlation Between Barings Active and Jpmorgan Smartretirement*
Can any of the company-specific risk be diversified away by investing in both Barings Active 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 Barings Active and Jpmorgan Smartretirement* into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Jpmorgan Smartretirement Blend, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Jpmorgan Smartretirement*. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Jpmorgan Smartretirement*.
Diversification Opportunities for Barings Active and Jpmorgan Smartretirement*
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Jpmorgan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Jpmorgan Smartretirement Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement* and Barings Active 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 Barings Active Short 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 Barings Active i.e., Barings Active and Jpmorgan Smartretirement* go up and down completely randomly.
Pair Corralation between Barings Active and Jpmorgan Smartretirement*
Assuming the 90 days horizon Barings Active is expected to generate 2.02 times less return on investment than Jpmorgan Smartretirement*. But when comparing it to its historical volatility, Barings Active Short is 2.7 times less risky than Jpmorgan Smartretirement*. It trades about 0.04 of its potential returns per unit of risk. Jpmorgan Smartretirement Blend is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,392 in Jpmorgan Smartretirement Blend on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Jpmorgan Smartretirement Blend or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Jpmorgan Smartretirement Blend
Performance |
| Timeline |
| Barings Active Short |
| Jpmorgan Smartretirement* |
Barings Active and Jpmorgan Smartretirement* Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Jpmorgan Smartretirement*
The main advantage of trading using opposite Barings Active and Jpmorgan Smartretirement* positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Icon Information Technology | Barings Active vs. Mfs Technology Fund | Barings Active vs. Allianzgi Technology Fund | Barings Active vs. Firsthand Technology Opportunities |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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