Correlation Between Bbh Intermediate and J Hancock
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and J Hancock 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 Bbh Intermediate and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and J Hancock Ii, you can compare the effects of market volatilities on Bbh Intermediate and J Hancock 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 Bbh Intermediate with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and J Hancock.
Diversification Opportunities for Bbh Intermediate and J Hancock
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bbh and JROUX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and J Hancock go up and down completely randomly.
Pair Corralation between Bbh Intermediate and J Hancock
Assuming the 90 days horizon Bbh Intermediate is expected to generate 3.46 times less return on investment than J Hancock. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 4.3 times less risky than J Hancock. It trades about 0.18 of its potential returns per unit of risk. J Hancock Ii is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,104 in J Hancock Ii on September 1, 2024 and sell it today you would earn a total of 352.00 from holding J Hancock Ii or generate 31.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. J Hancock Ii
Performance |
| Timeline |
| Bbh Intermediate Mun |
| J Hancock Ii |
Bbh Intermediate and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and J Hancock
The main advantage of trading using opposite Bbh Intermediate and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, J Hancock 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 J Hancock will offset losses from the drop in J Hancock's long position.| Bbh Intermediate vs. Nationwide Growth Fund | Bbh Intermediate vs. T Rowe Price | Bbh Intermediate vs. Eip Growth And | Bbh Intermediate vs. Small Pany Growth |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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