Correlation Between Elfun Income and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Elfun Income and Jhancock Diversified 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 Elfun Income and Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Income Fund and Jhancock Diversified Macro, you can compare the effects of market volatilities on Elfun Income and Jhancock Diversified 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 Elfun Income with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Income and Jhancock Diversified.
Diversification Opportunities for Elfun Income and Jhancock Diversified
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elfun and Jhancock is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Income Fund and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Elfun Income 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 Elfun Income Fund are associated (or correlated) with Jhancock Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Diversified has no effect on the direction of Elfun Income i.e., Elfun Income and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Elfun Income and Jhancock Diversified
Assuming the 90 days horizon Elfun Income Fund is expected to generate 0.46 times more return on investment than Jhancock Diversified. However, Elfun Income Fund is 2.19 times less risky than Jhancock Diversified. It trades about -0.14 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about -0.38 per unit of risk. If you would invest 962.00 in Elfun Income Fund on January 13, 2025 and sell it today you would lose (14.00) from holding Elfun Income Fund or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elfun Income Fund vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Elfun Income |
| Jhancock Diversified |
Elfun Income and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Income and Jhancock Diversified
The main advantage of trading using opposite Elfun Income and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Income position performs unexpectedly, Jhancock Diversified 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 Diversified will offset losses from the drop in Jhancock Diversified's long position.| Elfun Income vs. State Street Target | Elfun Income vs. State Street Target | Elfun Income vs. Ssga International Stock | Elfun Income vs. State Street Target |
| Jhancock Diversified vs. Eic Value Fund | Jhancock Diversified vs. Tax Managed International Equity | Jhancock Diversified vs. Flakqx | Jhancock Diversified vs. Ab Global Risk |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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