Correlation Between Jpmorgan Smartretirement and Blackstone Secured

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

By analyzing existing cross correlation between Jpmorgan Smartretirement 2045 and Blackstone Secured Lending, you can compare the effects of market volatilities on Jpmorgan Smartretirement and Blackstone Secured 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 Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Smartretirement and Blackstone Secured.

Diversification Opportunities for Jpmorgan Smartretirement and Blackstone Secured

0.53

Correlation Coefficient

Jpmorgan Smartretirement  Blackstone Secured

Very weak diversification

The 3 months correlation between Jpmorgan and Blackstone is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Smartretirement 2045 and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured 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 2045 are associated (or correlated) with Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of Jpmorgan Smartretirement i.e., Jpmorgan Smartretirement and Blackstone Secured go up and down completely randomly.

Pair Corralation between Jpmorgan Smartretirement and Blackstone Secured

Assuming the 90 days horizon Jpmorgan Smartretirement is expected to generate 24.79 times less return on investment than Blackstone Secured. But when comparing it to its historical volatility, Jpmorgan Smartretirement 2045 is 1.51 times less risky than Blackstone Secured. It trades about 0.0 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,173  in Blackstone Secured Lending on December 22, 2024 and sell it today you would earn a total of  127.00  from holding Blackstone Secured Lending or generate 4.0% return on investment over 90 days.

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

Jpmorgan Smartretirement 2045  vs.  Blackstone Secured Lending

Jpmorgan Smartretirement

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jpmorgan Smartretirement 2045 has generated negative risk-adjusted returns adding no value to fund investors. 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.

Blackstone Secured

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Secured Lending are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Blackstone Secured is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Jpmorgan Smartretirement and Blackstone Secured

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

The idea behind Jpmorgan Smartretirement 2045 and Blackstone Secured Lending 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.