Correlation Between Hennessy Technology and Jpmorgan Smartretirement*
Can any of the company-specific risk be diversified away by investing in both Hennessy Technology 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 Hennessy Technology and Jpmorgan Smartretirement* into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Technology Fund and Jpmorgan Smartretirement Blend, you can compare the effects of market volatilities on Hennessy Technology 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 Hennessy Technology with a short position of Jpmorgan Smartretirement*. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Technology and Jpmorgan Smartretirement*.
Diversification Opportunities for Hennessy Technology and Jpmorgan Smartretirement*
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hennessy and Jpmorgan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Technology 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 Hennessy Technology 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 Hennessy Technology 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 Hennessy Technology i.e., Hennessy Technology and Jpmorgan Smartretirement* go up and down completely randomly.
Pair Corralation between Hennessy Technology and Jpmorgan Smartretirement*
Assuming the 90 days horizon Hennessy Technology Fund is expected to under-perform the Jpmorgan Smartretirement*. In addition to that, Hennessy Technology is 2.28 times more volatile than Jpmorgan Smartretirement Blend. It trades about -0.02 of its total potential returns per unit of risk. Jpmorgan Smartretirement Blend is currently generating about 0.07 per unit of volatility. If you would invest 2,967 in Jpmorgan Smartretirement Blend on November 27, 2024 and sell it today you would earn a total of 20.00 from holding Jpmorgan Smartretirement Blend or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Technology Fund vs. Jpmorgan Smartretirement Blend
Performance |
| Timeline |
| Hennessy Technology |
| Jpmorgan Smartretirement* |
Hennessy Technology and Jpmorgan Smartretirement* Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Technology and Jpmorgan Smartretirement*
The main advantage of trading using opposite Hennessy Technology and Jpmorgan Smartretirement* positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Technology 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.| Hennessy Technology vs. Black Oak Emerging | Hennessy Technology vs. Hennessy Large Cap | Hennessy Technology vs. Hennessy Japan Fund | Hennessy Technology vs. Hennessy Small Cap |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |