Correlation Between Saat Moderate and Jpmorgan Smartretirement
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and Jpmorgan Smartretirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Jpmorgan Smartretirement 2035, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Jpmorgan Smartretirement.
Diversification Opportunities for Saat Moderate and Jpmorgan Smartretirement
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SAAT and Jpmorgan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Jpmorgan Smartretirement 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Saat Moderate 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 Saat Moderate Strategy 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 Saat Moderate i.e., Saat Moderate and Jpmorgan Smartretirement go up and down completely randomly.
Pair Corralation between Saat Moderate and Jpmorgan Smartretirement
Assuming the 90 days horizon Saat Moderate is expected to generate 1.45 times less return on investment than Jpmorgan Smartretirement. But when comparing it to its historical volatility, Saat Moderate Strategy is 1.99 times less risky than Jpmorgan Smartretirement. It trades about 0.15 of its potential returns per unit of risk. Jpmorgan Smartretirement 2035 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,900 in Jpmorgan Smartretirement 2035 on September 3, 2024 and sell it today you would earn a total of 172.00 from holding Jpmorgan Smartretirement 2035 or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Jpmorgan Smartretirement 2035
Performance |
| Timeline |
| Saat Moderate Strategy |
| Jpmorgan Smartretirement |
Saat Moderate and Jpmorgan Smartretirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Jpmorgan Smartretirement
The main advantage of trading using opposite Saat Moderate and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.| Saat Moderate vs. Vanguard Lifestrategy Moderate | Saat Moderate vs. Vanguard Lifestrategy Income | Saat Moderate vs. Vanguard Lifestrategy Growth | Saat Moderate vs. Vanguard Explorer Fund |
| Jpmorgan Smartretirement vs. Vanguard Target Retirement | Jpmorgan Smartretirement vs. American Funds 2035 | Jpmorgan Smartretirement vs. American Funds 2035 | Jpmorgan Smartretirement vs. American Funds 2035 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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