Correlation Between MicroAlgo and Jpmorgan Smartretirement

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

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

Diversification Opportunities for MicroAlgo and Jpmorgan Smartretirement

-0.38

Correlation Coefficient

MicroAlgo  Jpmorgan Smartretirement

Very good diversification

The 3 months correlation between MicroAlgo and Jpmorgan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo and Jpmorgan Smartretirement 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Smartretirement and MicroAlgo 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 MicroAlgo 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 MicroAlgo i.e., MicroAlgo and Jpmorgan Smartretirement go up and down completely randomly.

Pair Corralation between MicroAlgo and Jpmorgan Smartretirement

Given the investment horizon of 90 days MicroAlgo is expected to generate 52.42 times more return on investment than Jpmorgan Smartretirement. However, MicroAlgo is 52.42 times more volatile than Jpmorgan Smartretirement 2035. It trades about 0.03 of its potential returns per unit of risk. Jpmorgan Smartretirement 2035 is currently generating about 0.06 per unit of risk. If you would invest  9,900  in MicroAlgo on August 16, 2024 and sell it today you would lose (9,881) from holding MicroAlgo or give up 99.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

MicroAlgo  vs.  Jpmorgan Smartretirement 2035

MicroAlgo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Jpmorgan Smartretirement

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Smartretirement 2035 are ranked lower than 6 (%) 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 MicroAlgo and Jpmorgan Smartretirement

The main advantage of trading using opposite MicroAlgo and Jpmorgan Smartretirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroAlgo 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 MicroAlgo 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.