Correlation Between Ab Global and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global E and Jhancock Diversified Macro, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Jhancock Diversified.
Diversification Opportunities for Ab Global and Jhancock Diversified
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GCEAX and Jhancock is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Ab Global 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 Global E 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 Ab Global i.e., Ab Global and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Ab Global and Jhancock Diversified
Assuming the 90 days horizon Ab Global E is expected to generate 1.23 times more return on investment than Jhancock Diversified. However, Ab Global is 1.23 times more volatile than Jhancock Diversified Macro. It trades about 0.11 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about -0.03 per unit of risk. If you would invest 1,438 in Ab Global E on September 4, 2024 and sell it today you would earn a total of 354.00 from holding Ab Global E or generate 24.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global E vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Ab Global E |
| Jhancock Diversified |
Ab Global and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Jhancock Diversified
The main advantage of trading using opposite Ab Global and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Gold And Precious | Ab Global vs. Great West Goldman Sachs | Ab Global vs. Global Gold Fund | Ab Global vs. Precious Metals And |
| Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Multimanager Lifestyle Moderate | Jhancock Diversified 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |