Correlation Between Axonic Strategic and JP Morgan
Can any of the company-specific risk be diversified away by investing in both Axonic Strategic 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 Axonic Strategic and JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axonic Strategic Income and JP Morgan Exchange Traded, you can compare the effects of market volatilities on Axonic Strategic 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 Axonic Strategic with a short position of JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axonic Strategic and JP Morgan.
Diversification Opportunities for Axonic Strategic and JP Morgan
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axonic and JPIE is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Axonic Strategic Income and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange and Axonic Strategic 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 Axonic Strategic Income 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 Exchange has no effect on the direction of Axonic Strategic i.e., Axonic Strategic and JP Morgan go up and down completely randomly.
Pair Corralation between Axonic Strategic and JP Morgan
Assuming the 90 days horizon Axonic Strategic Income is expected to generate 0.7 times more return on investment than JP Morgan. However, Axonic Strategic Income is 1.43 times less risky than JP Morgan. It trades about 0.22 of its potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about 0.11 per unit of risk. If you would invest 757.00 in Axonic Strategic Income on August 26, 2024 and sell it today you would earn a total of 141.00 from holding Axonic Strategic Income or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axonic Strategic Income vs. JP Morgan Exchange Traded
Performance |
| Timeline |
| Axonic Strategic Income |
| JP Morgan Exchange |
Axonic Strategic and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axonic Strategic and JP Morgan
The main advantage of trading using opposite Axonic Strategic and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axonic Strategic 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.| Axonic Strategic vs. Axonic Strategic Income | Axonic Strategic vs. FT Vest Equity | Axonic Strategic vs. Zillow Group Class | Axonic Strategic vs. Northern Lights |
| JP Morgan vs. JPMorgan Core Plus | JP Morgan vs. JPMorgan International Bond | JP Morgan vs. JPMorgan Ultra Short Income | JP Morgan vs. JPMorgan Short Duration |
Check out your portfolio center.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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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