Correlation Between Atac Inflation and Jpmorgan Smartretirement

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

By analyzing existing cross correlation between Atac Inflation Rotation and Jpmorgan Smartretirement 2035, you can compare the effects of market volatilities on Atac Inflation 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 Atac Inflation with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and Jpmorgan Smartretirement.

Diversification Opportunities for Atac Inflation and Jpmorgan Smartretirement

0.66

Correlation Coefficient

Atac Inflation  Jpmorgan Smartretirement

Poor diversification

The 3 months correlation between Atac and Jpmorgan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation and Jpmorgan Smartretirement 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Atac Inflation 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 Atac Inflation Rotation 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 Atac Inflation i.e., Atac Inflation and Jpmorgan Smartretirement go up and down completely randomly.

Pair Corralation between Atac Inflation and Jpmorgan Smartretirement

Assuming the 90 days horizon Atac Inflation Rotation is expected to generate 2.4 times more return on investment than Jpmorgan Smartretirement. However, Atac Inflation is 2.4 times more volatile than Jpmorgan Smartretirement 2035. It trades about 0.06 of its potential returns per unit of risk. Jpmorgan Smartretirement 2035 is currently generating about 0.08 per unit of risk. If you would invest  3,136  in Atac Inflation Rotation on September 15, 2024 and sell it today you would earn a total of  277.00  from holding Atac Inflation Rotation or generate 8.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Atac Inflation Rotation  vs.  Jpmorgan Smartretirement 2035

Atac Inflation Rotation

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atac Inflation Rotation are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Atac Inflation is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Smartretirement

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement 2035 are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Smartretirement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Atac Inflation and Jpmorgan Smartretirement

The main advantage of trading using opposite Atac Inflation and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation 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 Atac Inflation Rotation and Jpmorgan Smartretirement 2035 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.