Correlation Between American Century and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both American Century and Jhancock Global 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 American Century and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Century Global and Jhancock Global Equity, you can compare the effects of market volatilities on American Century and Jhancock Global 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 American Century with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and Jhancock Global.
Diversification Opportunities for American Century and Jhancock Global
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Jhancock is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding American Century Global and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity and American Century 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 American Century Global are associated (or correlated) with Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of American Century i.e., American Century and Jhancock Global go up and down completely randomly.
Pair Corralation between American Century and Jhancock Global
Assuming the 90 days horizon American Century Global is expected to generate 1.15 times more return on investment than Jhancock Global. However, American Century is 1.15 times more volatile than Jhancock Global Equity. It trades about 0.17 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.07 per unit of risk. If you would invest 1,223 in American Century Global on September 1, 2024 and sell it today you would earn a total of 213.00 from holding American Century Global or generate 17.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Century Global vs. Jhancock Global Equity
Performance |
| Timeline |
| American Century Global |
| Jhancock Global Equity |
American Century and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Century and Jhancock Global
The main advantage of trading using opposite American Century and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century position performs unexpectedly, Jhancock Global 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 Jhancock Global will offset losses from the drop in Jhancock Global's long position.| American Century vs. Transamerica Financial Life | American Century vs. Prudential Jennison Financial | American Century vs. Fidelity Advisor Financial | American Century vs. Blackrock Financial Institutions |
| Jhancock Global vs. Regional Bank Fund | Jhancock Global vs. Regional Bank Fund | Jhancock Global vs. Multimanager Lifestyle Moderate | Jhancock Global vs. Multimanager Lifestyle Balanced |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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