Correlation Between Jpmorgan Smartretirement and Putnam Money
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Smartretirement and Putnam Money 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 Jpmorgan Smartretirement and Putnam Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Smartretirement Blend and Putnam Money Market, you can compare the effects of market volatilities on Jpmorgan Smartretirement and Putnam Money 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 Jpmorgan Smartretirement with a short position of Putnam Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and Putnam Money.
Diversification Opportunities for Jpmorgan Smartretirement and Putnam Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jpmorgan and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement Blend and Putnam Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Money Market and Jpmorgan Smartretirement 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 Jpmorgan Smartretirement Blend are associated (or correlated) with Putnam Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Money Market has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Putnam Money go up and down completely randomly.
Pair Corralation between Jpmorgan Smartretirement and Putnam Money
Assuming the 90 days horizon Jpmorgan Smartretirement Blend is expected to generate 3.51 times more return on investment than Putnam Money. However, Jpmorgan Smartretirement is 3.51 times more volatile than Putnam Money Market. It trades about 0.12 of its potential returns per unit of risk. Putnam Money Market is currently generating about 0.14 per unit of risk. If you would invest 2,082 in Jpmorgan Smartretirement Blend on September 15, 2024 and sell it today you would earn a total of 342.00 from holding Jpmorgan Smartretirement Blend or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Smartretirement Blend vs. Putnam Money Market
Performance |
| Timeline |
| Jpmorgan Smartretirement |
| Putnam Money Market |
Jpmorgan Smartretirement and Putnam Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Smartretirement and Putnam Money
The main advantage of trading using opposite Jpmorgan Smartretirement and Putnam Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement position performs unexpectedly, Putnam Money 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 Putnam Money will offset losses from the drop in Putnam Money's long position.| Jpmorgan Smartretirement vs. Putnam Money Market | Jpmorgan Smartretirement vs. Prudential Government Money | Jpmorgan Smartretirement vs. The Gabelli Money | Jpmorgan Smartretirement vs. Matson Money Equity |
| Putnam Money vs. Vanguard Total Stock | Putnam Money vs. Vanguard 500 Index | Putnam Money vs. Vanguard Total Stock | Putnam Money vs. Vanguard Total Stock |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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