Correlation Between Fisher Small and Jpmorgan Smartretirement

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

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

Diversification Opportunities for Fisher Small and Jpmorgan Smartretirement

0.69

Correlation Coefficient

Fisher Small  Jpmorgan Smartretirement

Poor diversification

The 3 months correlation between Fisher and Jpmorgan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and Jpmorgan Smartretirement 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Fisher Small 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 Fisher Small 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 Fisher Small i.e., Fisher Small and Jpmorgan Smartretirement go up and down completely randomly.

Pair Corralation between Fisher Small and Jpmorgan Smartretirement

Assuming the 90 days horizon Fisher Small Cap is expected to generate 2.66 times more return on investment than Jpmorgan Smartretirement. However, Fisher Small is 2.66 times more volatile than Jpmorgan Smartretirement 2035. It trades about 0.16 of its potential returns per unit of risk. Jpmorgan Smartretirement 2035 is currently generating about 0.13 per unit of risk. If you would invest  1,192  in Fisher Small Cap on September 1, 2024 and sell it today you would earn a total of  157.00  from holding Fisher Small Cap or generate 13.17% return on investment over 90 days.

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

Fisher Small Cap  vs.  Jpmorgan Smartretirement 2035

Fisher Small Cap

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Small Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Fisher Small showed solid returns over the last few months and may actually be approaching a breakup point.

Jpmorgan Smartretirement

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement 2035 are ranked lower than 10 (%) 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 Fisher Small and Jpmorgan Smartretirement

The main advantage of trading using opposite Fisher Small and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Small 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 Fisher Small Cap 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.