Correlation Between Firsthand Technology and Jpmorgan Smartretirement
Can any of the company-specific risk be diversified away by investing in both Firsthand 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 Firsthand 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 Firsthand Technology Opportunities and Jpmorgan Smartretirement 2020, you can compare the effects of market volatilities on Firsthand 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 Firsthand Technology with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Jpmorgan Smartretirement.
Diversification Opportunities for Firsthand Technology and Jpmorgan Smartretirement
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Firsthand and Jpmorgan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Jpmorgan Smartretirement 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Firsthand 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 Firsthand Technology Opportunities 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 Firsthand Technology i.e., Firsthand Technology and Jpmorgan Smartretirement go up and down completely randomly.
Pair Corralation between Firsthand Technology and Jpmorgan Smartretirement
Assuming the 90 days horizon Firsthand Technology is expected to generate 24.73 times less return on investment than Jpmorgan Smartretirement. In addition to that, Firsthand Technology is 4.08 times more volatile than Jpmorgan Smartretirement 2020. It trades about 0.0 of its total potential returns per unit of risk. Jpmorgan Smartretirement 2020 is currently generating about 0.09 per unit of volatility. If you would invest 1,428 in Jpmorgan Smartretirement 2020 on August 29, 2024 and sell it today you would earn a total of 218.00 from holding Jpmorgan Smartretirement 2020 or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Jpmorgan Smartretirement 2020
Performance |
| Timeline |
| Firsthand Technology |
| Jpmorgan Smartretirement |
Firsthand Technology and Jpmorgan Smartretirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Jpmorgan Smartretirement
The main advantage of trading using opposite Firsthand Technology and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand 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.| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet Fund |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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