Correlation Between Jpmorgan Smartretirement and Kirr Marbach

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

By analyzing existing cross correlation between Jpmorgan Smartretirement 2060 and Kirr Marbach Partners, you can compare the effects of market volatilities on Jpmorgan Smartretirement and Kirr Marbach 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 Kirr Marbach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and Kirr Marbach.

Diversification Opportunities for Jpmorgan Smartretirement and Kirr Marbach

0.85

Correlation Coefficient

Jpmorgan Smartretirement  Kirr Marbach

Very poor diversification

The 3 months correlation between Jpmorgan and Kirr is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement 2060 and Kirr Marbach Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirr Marbach Partners 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 2060 are associated (or correlated) with Kirr Marbach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirr Marbach Partners has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Kirr Marbach go up and down completely randomly.

Pair Corralation between Jpmorgan Smartretirement and Kirr Marbach

Assuming the 90 days horizon Jpmorgan Smartretirement is expected to generate 3.12 times less return on investment than Kirr Marbach. But when comparing it to its historical volatility, Jpmorgan Smartretirement 2060 is 2.08 times less risky than Kirr Marbach. It trades about 0.03 of its potential returns per unit of risk. Kirr Marbach Partners is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,366  in Kirr Marbach Partners on October 27, 2024 and sell it today you would earn a total of  134.00  from holding Kirr Marbach Partners or generate 3.98% return on investment over 90 days.

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

Jpmorgan Smartretirement 2060  vs.  Kirr Marbach Partners

Jpmorgan Smartretirement

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement 2060 are ranked lower than 2 (%) 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.

Kirr Marbach Partners

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kirr Marbach Partners are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Kirr Marbach 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 Kirr Marbach

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

The idea behind Jpmorgan Smartretirement 2060 and Kirr Marbach Partners 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.