Correlation Between College Retirement and Jp Morgan

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

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

Diversification Opportunities for College Retirement and Jp Morgan

1.0

Correlation Coefficient

College Retirement  Jp Morgan

No risk reduction

The 3 months correlation between College and JTSQX is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding College Retirement Equities 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 College Retirement 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 College Retirement Equities 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 College Retirement i.e., College Retirement and Jp Morgan go up and down completely randomly.

Pair Corralation between College Retirement and Jp Morgan

Assuming the 90 days trading horizon College Retirement Equities is expected to generate 1.05 times more return on investment than Jp Morgan. However, College Retirement is 1.05 times more volatile than Jp Morgan Smartretirement. It trades about 0.23 of its potential returns per unit of risk. Jp Morgan Smartretirement is currently generating about 0.22 per unit of risk. If you would invest  33,635  in College Retirement Equities on May 6, 2025 and sell it today you would earn a total of  3,354  from holding College Retirement Equities or generate 9.97% return on investment over 90 days.

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

College Retirement Equities  vs.  Jp Morgan Smartretirement

College Retirement

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in College Retirement Equities are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, College Retirement may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Jp Morgan Smartretirement

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jp Morgan Smartretirement are ranked lower than 17 (%) 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 College Retirement and Jp Morgan

The main advantage of trading using opposite College Retirement and Jp Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if College Retirement 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 College Retirement Equities 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 Global Correlations module to find global opportunities by holding instruments from different markets.