Correlation Between Jpmorgan Smartretirement and Knife River
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Smartretirement and Knife River 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 Knife River 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 Knife River, you can compare the effects of market volatilities on Jpmorgan Smartretirement and Knife River 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 Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and Knife River.
Diversification Opportunities for Jpmorgan Smartretirement and Knife River
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jpmorgan and Knife is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement Blend and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River 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 Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Knife River go up and down completely randomly.
Pair Corralation between Jpmorgan Smartretirement and Knife River
Assuming the 90 days horizon Jpmorgan Smartretirement is expected to generate 1.78 times less return on investment than Knife River. But when comparing it to its historical volatility, Jpmorgan Smartretirement Blend is 5.06 times less risky than Knife River. It trades about 0.17 of its potential returns per unit of risk. Knife River is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,102 in Knife River on November 4, 2024 and sell it today you would earn a total of 256.00 from holding Knife River or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Smartretirement Blend vs. Knife River
Performance |
| Timeline |
| Jpmorgan Smartretirement |
| Knife River |
Jpmorgan Smartretirement and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Smartretirement and Knife River
The main advantage of trading using opposite Jpmorgan Smartretirement and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.The idea behind Jpmorgan Smartretirement Blend and Knife River pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Knife River vs. RH | Knife River vs. Treasury Wine Estates | Knife River vs. Oatly Group AB | Knife River vs. Naked Wines plc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |