Correlation Between Aptus Defined and JPMorgan Core
Can any of the company-specific risk be diversified away by investing in both Aptus Defined 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 Aptus Defined and JPMorgan Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptus Defined Risk and JPMorgan Core Plus, you can compare the effects of market volatilities on Aptus Defined 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 Aptus Defined with a short position of JPMorgan Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Defined and JPMorgan Core.
Diversification Opportunities for Aptus Defined and JPMorgan Core
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aptus and JPMorgan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Defined Risk 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 Aptus Defined 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 Aptus Defined Risk 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 Aptus Defined i.e., Aptus Defined and JPMorgan Core go up and down completely randomly.
Pair Corralation between Aptus Defined and JPMorgan Core
Given the investment horizon of 90 days Aptus Defined Risk is expected to generate 2.76 times more return on investment than JPMorgan Core. However, Aptus Defined is 2.76 times more volatile than JPMorgan Core Plus. It trades about 0.08 of its potential returns per unit of risk. JPMorgan Core Plus is currently generating about 0.13 per unit of risk. If you would invest 2,841 in Aptus Defined Risk on September 3, 2025 and sell it today you would earn a total of 84.00 from holding Aptus Defined Risk or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptus Defined Risk vs. JPMorgan Core Plus
Performance |
| Timeline |
| Aptus Defined Risk |
| JPMorgan Core Plus |
Aptus Defined and JPMorgan Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Defined and JPMorgan Core
The main advantage of trading using opposite Aptus Defined and JPMorgan Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Defined 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.| Aptus Defined vs. Franklin FTSE Japan | Aptus Defined vs. iShares Core Aggressive | Aptus Defined vs. iShares Core Conservative | Aptus Defined vs. iShares Core Moderate |
| JPMorgan Core vs. Strategy Shares | JPMorgan Core vs. Freedom Day Dividend | JPMorgan Core vs. Franklin Templeton ETF | JPMorgan Core vs. iShares MSCI China |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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