Correlation Between Calvert Moderate and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate 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 Calvert Moderate and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Moderate Allocation and Jhancock Global Equity, you can compare the effects of market volatilities on Calvert Moderate 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 Calvert Moderate with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and Jhancock Global.
Diversification Opportunities for Calvert Moderate and Jhancock Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Jhancock is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation 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 Calvert Moderate 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 Calvert Moderate Allocation 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 Calvert Moderate i.e., Calvert Moderate and Jhancock Global go up and down completely randomly.
Pair Corralation between Calvert Moderate and Jhancock Global
Assuming the 90 days horizon Calvert Moderate is expected to generate 1.56 times less return on investment than Jhancock Global. But when comparing it to its historical volatility, Calvert Moderate Allocation is 1.21 times less risky than Jhancock Global. It trades about 0.19 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,175 in Jhancock Global Equity on October 28, 2024 and sell it today you would earn a total of 37.00 from holding Jhancock Global Equity or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. Jhancock Global Equity
Performance |
| Timeline |
| Calvert Moderate All |
| Jhancock Global Equity |
Calvert Moderate and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and Jhancock Global
The main advantage of trading using opposite Calvert Moderate and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate 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.| Calvert Moderate vs. The Equity Growth | Calvert Moderate vs. Stringer Growth Fund | Calvert Moderate vs. Vy Baron Growth | Calvert Moderate vs. Riverparknext Century 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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