Correlation Between Jpmorgan Smartretirement and Fs Managed

Can any of the company-specific risk be diversified away by investing in both Jpmorgan Smartretirement and Fs Managed 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 Fs Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jpmorgan Smartretirement 2035 and Fs Managed Futures, you can compare the effects of market volatilities on Jpmorgan Smartretirement and Fs Managed 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 Fs Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and Fs Managed.

Diversification Opportunities for Jpmorgan Smartretirement and Fs Managed

0.0

Correlation Coefficient

Jpmorgan Smartretirement  Fs Managed

Pay attention - limited upside

The 3 months correlation between Jpmorgan and FMFFX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement 2035 and Fs Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Managed Futures 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 2035 are associated (or correlated) with Fs Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Managed Futures has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Fs Managed go up and down completely randomly.

Pair Corralation between Jpmorgan Smartretirement and Fs Managed

Assuming the 90 days horizon Jpmorgan Smartretirement 2035 is expected to under-perform the Fs Managed. In addition to that, Jpmorgan Smartretirement is 16.11 times more volatile than Fs Managed Futures. It trades about -0.08 of its total potential returns per unit of risk. Fs Managed Futures is currently generating about 0.32 per unit of volatility. If you would invest  868.00  in Fs Managed Futures on September 22, 2024 and sell it today you would earn a total of  2.00  from holding Fs Managed Futures or generate 0.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	32.81%
Values	Daily Returns

Jpmorgan Smartretirement 2035  vs.  Fs Managed Futures

Jpmorgan Smartretirement

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Jpmorgan Smartretirement 2035 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Jpmorgan Smartretirement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fs Managed Futures

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Fs Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Fs Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jpmorgan Smartretirement and Fs Managed

The main advantage of trading using opposite Jpmorgan Smartretirement and Fs Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Smartretirement position performs unexpectedly, Fs Managed 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 Fs Managed will offset losses from the drop in Fs Managed's long position.

The idea behind Jpmorgan Smartretirement 2035 and Fs Managed Futures 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.