Correlation Between Calvert Short and Jpmorgan Smartretirement

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

By analyzing existing cross correlation between Calvert Short Duration and Jpmorgan Smartretirement 2030, you can compare the effects of market volatilities on Calvert Short 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 Calvert Short with a short position of Jpmorgan Smartretirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Short and Jpmorgan Smartretirement.

Diversification Opportunities for Calvert Short and Jpmorgan Smartretirement

0.93

Correlation Coefficient

Calvert Short  Jpmorgan Smartretirement

Almost no diversification

The 3 months correlation between Calvert and Jpmorgan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Jpmorgan Smartretirement 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and Calvert Short 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 Calvert Short Duration 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 Calvert Short i.e., Calvert Short and Jpmorgan Smartretirement go up and down completely randomly.

Pair Corralation between Calvert Short and Jpmorgan Smartretirement

Assuming the 90 days horizon Calvert Short is expected to generate 3.41 times less return on investment than Jpmorgan Smartretirement. But when comparing it to its historical volatility, Calvert Short Duration is 3.09 times less risky than Jpmorgan Smartretirement. It trades about 0.25 of its potential returns per unit of risk. Jpmorgan Smartretirement 2030 is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  1,886  in Jpmorgan Smartretirement 2030 on May 21, 2025 and sell it today you would earn a total of  123.00  from holding Jpmorgan Smartretirement 2030 or generate 6.52% return on investment over 90 days.

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

Calvert Short Duration  vs.  Jpmorgan Smartretirement 2030

Calvert Short Duration

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Short Duration are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Smartretirement

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement 2030 are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jpmorgan Smartretirement may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calvert Short and Jpmorgan Smartretirement

The main advantage of trading using opposite Calvert Short and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Short 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 Calvert Short Duration and Jpmorgan Smartretirement 2030 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.