Correlation Between JPMorgan Inflation and Ionic Inflation
Can any of the company-specific risk be diversified away by investing in both JPMorgan Inflation and Ionic Inflation 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 JPMorgan Inflation and Ionic Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Inflation Managed and Ionic Inflation Protection, you can compare the effects of market volatilities on JPMorgan Inflation and Ionic Inflation 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 JPMorgan Inflation with a short position of Ionic Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Inflation and Ionic Inflation.
Diversification Opportunities for JPMorgan Inflation and Ionic Inflation
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JPMorgan and Ionic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Inflation Managed and Ionic Inflation Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ionic Inflation Prot and JPMorgan Inflation 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 JPMorgan Inflation Managed are associated (or correlated) with Ionic Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ionic Inflation Prot has no effect on the direction of JPMorgan Inflation i.e., JPMorgan Inflation and Ionic Inflation go up and down completely randomly.
Pair Corralation between JPMorgan Inflation and Ionic Inflation
Given the investment horizon of 90 days JPMorgan Inflation Managed is expected to under-perform the Ionic Inflation. But the etf apears to be less risky and, when comparing its historical volatility, JPMorgan Inflation Managed is 1.67 times less risky than Ionic Inflation. The etf trades about -0.12 of its potential returns per unit of risk. The Ionic Inflation Protection is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,948 in Ionic Inflation Protection on August 24, 2024 and sell it today you would earn a total of 18.00 from holding Ionic Inflation Protection or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Inflation Managed vs. Ionic Inflation Protection
Performance |
| Timeline |
| JPMorgan Inflation |
| Ionic Inflation Prot |
JPMorgan Inflation and Ionic Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Inflation and Ionic Inflation
The main advantage of trading using opposite JPMorgan Inflation and Ionic Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Inflation position performs unexpectedly, Ionic Inflation 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 Ionic Inflation will offset losses from the drop in Ionic Inflation's long position.| JPMorgan Inflation vs. Dimensional ETF Trust | JPMorgan Inflation vs. JPMorgan Short Duration | JPMorgan Inflation vs. Goldman Sachs Access | JPMorgan Inflation vs. SPDR Bloomberg 1 10 |
| Ionic Inflation vs. Schwab Intermediate Term Treasury | Ionic Inflation vs. Schwab Aggregate Bond | Ionic Inflation vs. Schwab International Equity | Ionic Inflation vs. Schwab Emerging Markets |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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