Correlation Between Europac Gold and Jpmorgan Smartretirement

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Europac Gold 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 Europac Gold and Jpmorgan Smartretirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Jpmorgan Smartretirement Blend, you can compare the effects of market volatilities on Europac Gold 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 Europac Gold with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Jpmorgan Smartretirement.

Diversification Opportunities for Europac Gold and Jpmorgan Smartretirement

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Europac and Jpmorgan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Jpmorgan Smartretirement Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Europac Gold 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 Europac Gold Fund 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 Europac Gold i.e., Europac Gold and Jpmorgan Smartretirement go up and down completely randomly.

Pair Corralation between Europac Gold and Jpmorgan Smartretirement

Assuming the 90 days horizon Europac Gold Fund is expected to under-perform the Jpmorgan Smartretirement. In addition to that, Europac Gold is 4.82 times more volatile than Jpmorgan Smartretirement Blend. It trades about -0.13 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  2,975  in Jpmorgan Smartretirement Blend on September 1, 2024 and sell it today you would earn a total of  95.00  from holding Jpmorgan Smartretirement Blend or generate 3.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Europac Gold Fund  vs.  Jpmorgan Smartretirement Blend

 Performance 
       Timeline  
Europac Gold 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Europac Gold Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Europac Gold may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Jpmorgan Smartretirement 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement Blend are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Jpmorgan Smartretirement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Europac Gold and Jpmorgan Smartretirement Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Europac Gold and Jpmorgan Smartretirement

The main advantage of trading using opposite Europac Gold and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold 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.
The idea behind Europac Gold Fund and Jpmorgan Smartretirement Blend 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.
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges