Correlation Between First American and Jpmorgan Smartretirement*
Can any of the company-specific risk be diversified away by investing in both First American 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 First American and Jpmorgan Smartretirement* into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Funds and Jpmorgan Smartretirement Blend, you can compare the effects of market volatilities on First American 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 First American with a short position of Jpmorgan Smartretirement*. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Jpmorgan Smartretirement*.
Diversification Opportunities for First American and Jpmorgan Smartretirement*
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Jpmorgan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding First American Funds and Jpmorgan Smartretirement Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement* and First American 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 First American Funds 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 First American i.e., First American and Jpmorgan Smartretirement* go up and down completely randomly.
Pair Corralation between First American and Jpmorgan Smartretirement*
Assuming the 90 days horizon First American Funds is expected to generate 32.35 times more return on investment than Jpmorgan Smartretirement*. However, First American is 32.35 times more volatile than Jpmorgan Smartretirement Blend. It trades about 0.03 of its potential returns per unit of risk. Jpmorgan Smartretirement Blend is currently generating about 0.09 per unit of risk. If you would invest 311.00 in First American Funds on September 3, 2024 and sell it today you would lose (211.00) from holding First American Funds or give up 67.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First American Funds vs. Jpmorgan Smartretirement Blend
Performance |
| Timeline |
| First American Funds |
| Jpmorgan Smartretirement* |
First American and Jpmorgan Smartretirement* Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Jpmorgan Smartretirement*
The main advantage of trading using opposite First American and Jpmorgan Smartretirement* positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American 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.| First American vs. Vanguard Total Stock | First American vs. Vanguard 500 Index | First American vs. Vanguard Total Stock | First American vs. Vanguard Total Stock |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |