Correlation Between Dana Large and Jpmorgan Smartretirement*

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Can any of the company-specific risk be diversified away by investing in both Dana Large 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 Dana Large and Jpmorgan Smartretirement* into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Jpmorgan Smartretirement Blend, you can compare the effects of market volatilities on Dana Large 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 Dana Large with a short position of Jpmorgan Smartretirement*. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Jpmorgan Smartretirement*.

Diversification Opportunities for Dana Large and Jpmorgan Smartretirement*

0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Dana and Jpmorgan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Jpmorgan Smartretirement Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement* and Dana Large 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 Dana Large Cap 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 Dana Large i.e., Dana Large and Jpmorgan Smartretirement* go up and down completely randomly.

Pair Corralation between Dana Large and Jpmorgan Smartretirement*

Assuming the 90 days horizon Dana Large Cap is expected to generate 1.24 times more return on investment than Jpmorgan Smartretirement*. However, Dana Large is 1.24 times more volatile than Jpmorgan Smartretirement Blend. It trades about 0.28 of its potential returns per unit of risk. Jpmorgan Smartretirement Blend is currently generating about 0.21 per unit of risk. If you would invest  2,411  in Dana Large Cap on September 6, 2024 and sell it today you would earn a total of  330.00  from holding Dana Large Cap or generate 13.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Dana Large Cap  vs.  Jpmorgan Smartretirement Blend

 Performance 
       Timeline  
Dana Large Cap 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Dana Large Cap are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Dana Large showed solid returns over the last few months and may actually be approaching a breakup point.
Jpmorgan Smartretirement* 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement Blend are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Jpmorgan Smartretirement* may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Dana Large and Jpmorgan Smartretirement* Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dana Large and Jpmorgan Smartretirement*

The main advantage of trading using opposite Dana Large and Jpmorgan Smartretirement* positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large 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.
The idea behind Dana Large Cap and Jpmorgan Smartretirement Blend 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.
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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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