Correlation Between JPMorgan Inflation and OneAscent Core
Can any of the company-specific risk be diversified away by investing in both JPMorgan Inflation and OneAscent Core 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 OneAscent Core 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 OneAscent Core Plus, you can compare the effects of market volatilities on JPMorgan Inflation and OneAscent Core 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 OneAscent Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Inflation and OneAscent Core.
Diversification Opportunities for JPMorgan Inflation and OneAscent Core
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JPMorgan and OneAscent is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Inflation Managed and OneAscent Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Core Plus 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 OneAscent Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Core Plus has no effect on the direction of JPMorgan Inflation i.e., JPMorgan Inflation and OneAscent Core go up and down completely randomly.
Pair Corralation between JPMorgan Inflation and OneAscent Core
Given the investment horizon of 90 days JPMorgan Inflation Managed is expected to generate 0.86 times more return on investment than OneAscent Core. However, JPMorgan Inflation Managed is 1.17 times less risky than OneAscent Core. It trades about -0.06 of its potential returns per unit of risk. OneAscent Core Plus is currently generating about -0.13 per unit of risk. If you would invest 4,761 in JPMorgan Inflation Managed on October 24, 2024 and sell it today you would lose (59.00) from holding JPMorgan Inflation Managed or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.78% |
| Values | Daily Returns |
JPMorgan Inflation Managed vs. OneAscent Core Plus
Performance |
| Timeline |
| JPMorgan Inflation |
| OneAscent Core Plus |
JPMorgan Inflation and OneAscent Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Inflation and OneAscent Core
The main advantage of trading using opposite JPMorgan Inflation and OneAscent Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Inflation position performs unexpectedly, OneAscent Core 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 OneAscent Core will offset losses from the drop in OneAscent Core'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 |
| OneAscent Core vs. Listed Funds Trust | OneAscent Core vs. PGIM ETF Trust | OneAscent Core vs. SSGA Active Trust | OneAscent Core vs. JPMorgan Inflation Managed |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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