Correlation Between Franklin Lifesmart and Jpmorgan Trust
Can any of the company-specific risk be diversified away by investing in both Franklin Lifesmart and Jpmorgan Trust 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 Franklin Lifesmart and Jpmorgan Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Lifesmart Retirement and Jpmorgan Trust I, you can compare the effects of market volatilities on Franklin Lifesmart and Jpmorgan Trust 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 Franklin Lifesmart with a short position of Jpmorgan Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Lifesmart and Jpmorgan Trust.
Diversification Opportunities for Franklin Lifesmart and Jpmorgan Trust
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Jpmorgan is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart Retirement and Jpmorgan Trust I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Trust I and Franklin Lifesmart 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 Franklin Lifesmart Retirement are associated (or correlated) with Jpmorgan Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Trust I has no effect on the direction of Franklin Lifesmart i.e., Franklin Lifesmart and Jpmorgan Trust go up and down completely randomly.
Pair Corralation between Franklin Lifesmart and Jpmorgan Trust
If you would invest 1,057 in Franklin Lifesmart Retirement on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Franklin Lifesmart Retirement or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Franklin Lifesmart Retirement vs. Jpmorgan Trust I
Performance |
| Timeline |
| Franklin Lifesmart |
| Jpmorgan Trust I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Lifesmart and Jpmorgan Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Lifesmart and Jpmorgan Trust
The main advantage of trading using opposite Franklin Lifesmart and Jpmorgan Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Lifesmart position performs unexpectedly, Jpmorgan Trust 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 Trust will offset losses from the drop in Jpmorgan Trust's long position.| Franklin Lifesmart vs. Vanguard Target Retirement | Franklin Lifesmart vs. Blackrock Lifepath Idx | Franklin Lifesmart vs. Aquagold International | Franklin Lifesmart vs. Morningstar Unconstrained Allocation |
| Jpmorgan Trust vs. Columbia Moderate Growth | Jpmorgan Trust vs. Franklin Lifesmart Retirement | Jpmorgan Trust vs. Wilmington Trust Retirement | Jpmorgan Trust vs. Great West Moderately Aggressive |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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