Correlation Between SSGA Active and JPMorgan Core
Can any of the company-specific risk be diversified away by investing in both SSGA Active and JPMorgan 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 SSGA Active and JPMorgan Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSGA Active Trust and JPMorgan Core Plus, you can compare the effects of market volatilities on SSGA Active and JPMorgan 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 SSGA Active with a short position of JPMorgan Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSGA Active and JPMorgan Core.
Diversification Opportunities for SSGA Active and JPMorgan Core
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SSGA and JPMorgan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SSGA Active Trust and JPMorgan Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Core Plus and SSGA Active 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 SSGA Active Trust are associated (or correlated) with JPMorgan Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Core Plus has no effect on the direction of SSGA Active i.e., SSGA Active and JPMorgan Core go up and down completely randomly.
Pair Corralation between SSGA Active and JPMorgan Core
Given the investment horizon of 90 days SSGA Active is expected to generate 1.06 times less return on investment than JPMorgan Core. But when comparing it to its historical volatility, SSGA Active Trust is 1.38 times less risky than JPMorgan Core. It trades about 0.21 of its potential returns per unit of risk. JPMorgan Core Plus is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,663 in JPMorgan Core Plus on September 1, 2024 and sell it today you would earn a total of 55.00 from holding JPMorgan Core Plus or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSGA Active Trust vs. JPMorgan Core Plus
Performance |
| Timeline |
| SSGA Active Trust |
| JPMorgan Core Plus |
SSGA Active and JPMorgan Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSGA Active and JPMorgan Core
The main advantage of trading using opposite SSGA Active and JPMorgan Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSGA Active position performs unexpectedly, JPMorgan 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 JPMorgan Core will offset losses from the drop in JPMorgan Core's long position.| SSGA Active vs. SPDR Bloomberg Barclays | SSGA Active vs. SPDR SSGA Fixed | SSGA Active vs. SPDR DoubleLine Short | SSGA Active vs. SPDR Portfolio Corporate |
| JPMorgan Core vs. SSGA Active Trust | JPMorgan Core vs. BlackRock Intermediate Muni | JPMorgan Core vs. iShares BBB Rated | JPMorgan Core vs. Xtrackers 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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