Correlation Between Ab Bond and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Ab Bond 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 Ab Bond and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Jhancock Global Equity, you can compare the effects of market volatilities on Ab Bond 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 Ab Bond with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Jhancock Global.
Diversification Opportunities for Ab Bond and Jhancock Global
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANBIX and Jhancock is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation 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 Ab Bond 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 Ab Bond Inflation 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 Ab Bond i.e., Ab Bond and Jhancock Global go up and down completely randomly.
Pair Corralation between Ab Bond and Jhancock Global
Assuming the 90 days horizon Ab Bond Inflation is expected to generate 0.33 times more return on investment than Jhancock Global. However, Ab Bond Inflation is 3.06 times less risky than Jhancock Global. It trades about 0.17 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.05 per unit of risk. If you would invest 1,023 in Ab Bond Inflation on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Ab Bond Inflation or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Jhancock Global Equity
Performance |
| Timeline |
| Ab Bond Inflation |
| Jhancock Global Equity |
Ab Bond and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Jhancock Global
The main advantage of trading using opposite Ab Bond and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond 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.| Ab Bond vs. Dreyfusstandish Global Fixed | Ab Bond vs. Ft 7927 Corporate | Ab Bond vs. Morningstar Defensive Bond | Ab Bond vs. Doubleline Yield Opportunities |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |