Correlation Between Icon Financial and Jpmorgan Smartretirement
Can any of the company-specific risk be diversified away by investing in both Icon Financial 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 Icon Financial and Jpmorgan Smartretirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Jpmorgan Smartretirement 2045, you can compare the effects of market volatilities on Icon Financial 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 Icon Financial with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Jpmorgan Smartretirement.
Diversification Opportunities for Icon Financial and Jpmorgan Smartretirement
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icon and Jpmorgan is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Jpmorgan Smartretirement 2045 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Icon Financial 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 Icon Financial 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 Icon Financial i.e., Icon Financial and Jpmorgan Smartretirement go up and down completely randomly.
Pair Corralation between Icon Financial and Jpmorgan Smartretirement
Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Jpmorgan Smartretirement. In addition to that, Icon Financial is 7.82 times more volatile than Jpmorgan Smartretirement 2045. It trades about -0.17 of its total potential returns per unit of risk. Jpmorgan Smartretirement 2045 is currently generating about 0.12 per unit of volatility. If you would invest 2,332 in Jpmorgan Smartretirement 2045 on September 14, 2024 and sell it today you would earn a total of 24.00 from holding Jpmorgan Smartretirement 2045 or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Financial Fund vs. Jpmorgan Smartretirement 2045
Performance |
| Timeline |
| Icon Financial |
| Jpmorgan Smartretirement |
Icon Financial and Jpmorgan Smartretirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Jpmorgan Smartretirement
The main advantage of trading using opposite Icon Financial and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial 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.| Icon Financial vs. Science Technology Fund | Icon Financial vs. Goldman Sachs Technology | Icon Financial vs. Allianzgi Technology Fund | Icon Financial vs. Janus Global Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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