Correlation Between Altegris Futures and Jpmorgan Smartretirement
Can any of the company-specific risk be diversified away by investing in both Altegris Futures 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 Altegris Futures and Jpmorgan Smartretirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altegris Futures Evolution and Jpmorgan Smartretirement 2030, you can compare the effects of market volatilities on Altegris Futures 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 Altegris Futures with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altegris Futures and Jpmorgan Smartretirement.
Diversification Opportunities for Altegris Futures and Jpmorgan Smartretirement
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altegris and Jpmorgan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Altegris Futures Evolution and Jpmorgan Smartretirement 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Altegris Futures 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 Altegris Futures Evolution 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 Altegris Futures i.e., Altegris Futures and Jpmorgan Smartretirement go up and down completely randomly.
Pair Corralation between Altegris Futures and Jpmorgan Smartretirement
Assuming the 90 days horizon Altegris Futures is expected to generate 1.61 times less return on investment than Jpmorgan Smartretirement. In addition to that, Altegris Futures is 1.01 times more volatile than Jpmorgan Smartretirement 2030. It trades about 0.04 of its total potential returns per unit of risk. Jpmorgan Smartretirement 2030 is currently generating about 0.06 per unit of volatility. If you would invest 1,571 in Jpmorgan Smartretirement 2030 on October 29, 2024 and sell it today you would earn a total of 266.00 from holding Jpmorgan Smartretirement 2030 or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Altegris Futures Evolution vs. Jpmorgan Smartretirement 2030
Performance |
| Timeline |
| Altegris Futures Evo |
| Jpmorgan Smartretirement |
Altegris Futures and Jpmorgan Smartretirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altegris Futures and Jpmorgan Smartretirement
The main advantage of trading using opposite Altegris Futures and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altegris Futures 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.| Altegris Futures vs. Alphacentric Lifesci Healthcare | Altegris Futures vs. Lord Abbett Health | Altegris Futures vs. Alger Health Sciences | Altegris Futures vs. Live Oak Health |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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