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

0.68

Correlation Coefficient

Axonic Strategic  JP Morgan

Poor diversification

The 3 months correlation between Axonic and JPIE is 0.68. 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 0.85 times more return on investment than JP Morgan. However, Axonic Strategic Income is 1.18 times less risky than JP Morgan. It trades about 0.24 of its potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about 0.19 per unit of risk. If you would invest  798.00  in Axonic Strategic Income on September 12, 2024 and sell it today you would earn a total of  106.00  from holding Axonic Strategic Income or generate 13.28% 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

Axonic Strategic Income

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Axonic Strategic Income are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward indicators, Axonic Strategic is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

JP Morgan Exchange

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Exchange Traded are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, JP Morgan is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

The idea behind Axonic Strategic Income and JP Morgan Exchange Traded 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.