Correlation Between Auer Growth and Jhancock Disciplined
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Jhancock Disciplined 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 Auer Growth and Jhancock Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Jhancock Disciplined Value, you can compare the effects of market volatilities on Auer Growth and Jhancock Disciplined 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 Auer Growth with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Jhancock Disciplined.
Diversification Opportunities for Auer Growth and Jhancock Disciplined
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auer and Jhancock is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Auer Growth 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 Auer Growth Fund are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Auer Growth i.e., Auer Growth and Jhancock Disciplined go up and down completely randomly.
Pair Corralation between Auer Growth and Jhancock Disciplined
Assuming the 90 days horizon Auer Growth is expected to generate 1.03 times less return on investment than Jhancock Disciplined. In addition to that, Auer Growth is 1.4 times more volatile than Jhancock Disciplined Value. It trades about 0.09 of its total potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.13 per unit of volatility. If you would invest 1,974 in Jhancock Disciplined Value on August 31, 2024 and sell it today you would earn a total of 785.00 from holding Jhancock Disciplined Value or generate 39.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Jhancock Disciplined Value
Performance |
| Timeline |
| Auer Growth Fund |
| Jhancock Disciplined |
Auer Growth and Jhancock Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Jhancock Disciplined
The main advantage of trading using opposite Auer Growth and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Jhancock Disciplined 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 Disciplined will offset losses from the drop in Jhancock Disciplined's long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Jhancock Disciplined vs. Oakmark International Fund | Jhancock Disciplined vs. Intrepid Endurance Fund | Jhancock Disciplined vs. HUMANA INC | Jhancock Disciplined vs. Aquagold International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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