Correlation Between Allianzgi Nfj and Jp Morgan

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

By analyzing existing cross correlation between Allianzgi Nfj Small Cap and Jp Morgan Smartretirement, you can compare the effects of market volatilities on Allianzgi Nfj and Jp Morgan 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 Allianzgi Nfj with a short position of Jp Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Jp Morgan.

Diversification Opportunities for Allianzgi Nfj and Jp Morgan

0.76

Correlation Coefficient

Allianzgi Nfj  Jp Morgan

Poor diversification

The 3 months correlation between Allianzgi and JTSQX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Small Cap and Jp Morgan Smartretirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jp Morgan Smartretirement and Allianzgi Nfj 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 Allianzgi Nfj Small Cap are associated (or correlated) with Jp Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jp Morgan Smartretirement has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Jp Morgan go up and down completely randomly.

Pair Corralation between Allianzgi Nfj and Jp Morgan

Assuming the 90 days horizon Allianzgi Nfj is expected to generate 1.44 times less return on investment than Jp Morgan. In addition to that, Allianzgi Nfj is 1.89 times more volatile than Jp Morgan Smartretirement. It trades about 0.06 of its total potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about 0.18 per unit of volatility. If you would invest  2,279  in Jp Morgan Smartretirement on May 5, 2025 and sell it today you would earn a total of  162.00  from holding Jp Morgan Smartretirement or generate 7.11% return on investment over 90 days.

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

Allianzgi Nfj Small Cap  vs.  Jp Morgan Smartretirement

Allianzgi Nfj Small

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj Small Cap are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Allianzgi Nfj is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jp Morgan Smartretirement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jp Morgan Smartretirement are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jp Morgan may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Allianzgi Nfj and Jp Morgan

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

The idea behind Allianzgi Nfj Small Cap and Jp Morgan Smartretirement 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..