Correlation Between Jpmorgan Smartretirement and Crm Longshort

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

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

Diversification Opportunities for Jpmorgan Smartretirement and Crm Longshort

0.2

Correlation Coefficient

Jpmorgan Smartretirement  Crm Longshort

Modest diversification

The 3 months correlation between Jpmorgan and Crm is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement Blend and Crm Longshort Opport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crm Longshort Opport 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 Blend are associated (or correlated) with Crm Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crm Longshort Opport has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Crm Longshort go up and down completely randomly.

Pair Corralation between Jpmorgan Smartretirement and Crm Longshort

Assuming the 90 days horizon Jpmorgan Smartretirement Blend is expected to generate 0.49 times more return on investment than Crm Longshort. However, Jpmorgan Smartretirement Blend is 2.05 times less risky than Crm Longshort. It trades about 0.03 of its potential returns per unit of risk. Crm Longshort Opport is currently generating about -0.2 per unit of risk. If you would invest  2,967  in Jpmorgan Smartretirement Blend on November 27, 2024 and sell it today you would earn a total of  22.00  from holding Jpmorgan Smartretirement Blend or generate 0.74% return on investment over 90 days.

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

Jpmorgan Smartretirement Blend  vs.  Crm Longshort Opport

Jpmorgan Smartretirement

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement Blend are ranked lower than 1 (%) 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.

Crm Longshort Opport

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crm Longshort Opport has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Jpmorgan Smartretirement and Crm Longshort

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

The idea behind Jpmorgan Smartretirement Blend and Crm Longshort Opport 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.