Correlation Between Inflation Protected and Vy Jpmorgan

Can any of the company-specific risk be diversified away by investing in both Inflation Protected and Vy Jpmorgan 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 Inflation Protected and Vy Jpmorgan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inflation Protected Bond Fund and Vy Jpmorgan Small, you can compare the effects of market volatilities on Inflation Protected and Vy Jpmorgan 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 Inflation Protected with a short position of Vy Jpmorgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflation Protected and Vy Jpmorgan.

Diversification Opportunities for Inflation Protected and Vy Jpmorgan

0.88

Correlation Coefficient

Inflation Protected  Vy Jpmorgan

Very poor diversification

The 3 months correlation between Inflation and IJSIX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Inflation Protected Bond Fund and Vy Jpmorgan Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Jpmorgan Small and Inflation Protected 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 Inflation Protected Bond Fund are associated (or correlated) with Vy Jpmorgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Jpmorgan Small has no effect on the direction of Inflation Protected i.e., Inflation Protected and Vy Jpmorgan go up and down completely randomly.

Pair Corralation between Inflation Protected and Vy Jpmorgan

Assuming the 90 days horizon Inflation Protected is expected to generate 3.85 times less return on investment than Vy Jpmorgan. But when comparing it to its historical volatility, Inflation Protected Bond Fund is 3.51 times less risky than Vy Jpmorgan. It trades about 0.18 of its potential returns per unit of risk. Vy Jpmorgan Small is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,267  in Vy Jpmorgan Small on April 30, 2025 and sell it today you would earn a total of  175.00  from holding Vy Jpmorgan Small or generate 13.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Inflation Protected Bond Fund  vs.  Vy Jpmorgan Small

Inflation Protected

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inflation Protected Bond Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Inflation Protected is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Vy Jpmorgan Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Jpmorgan Small are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vy Jpmorgan showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inflation Protected and Vy Jpmorgan

The main advantage of trading using opposite Inflation Protected and Vy Jpmorgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflation Protected position performs unexpectedly, Vy Jpmorgan 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 Vy Jpmorgan will offset losses from the drop in Vy Jpmorgan's long position.

The idea behind Inflation Protected Bond Fund and Vy Jpmorgan Small 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.