Correlation Between Global Bond and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Global Bond 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 Global Bond and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Bond Fund and Jhancock Global Equity, you can compare the effects of market volatilities on Global Bond 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 Global Bond with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Bond and Jhancock Global.
Diversification Opportunities for Global Bond and Jhancock Global
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Jhancock is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Global Bond Fund 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 Global Bond 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 Global Bond Fund 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 Global Bond i.e., Global Bond and Jhancock Global go up and down completely randomly.
Pair Corralation between Global Bond and Jhancock Global
Assuming the 90 days horizon Global Bond is expected to generate 4.64 times less return on investment than Jhancock Global. But when comparing it to its historical volatility, Global Bond Fund is 1.95 times less risky than Jhancock Global. It trades about 0.04 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,033 in Jhancock Global Equity on September 13, 2024 and sell it today you would earn a total of 325.00 from holding Jhancock Global Equity or generate 31.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global Bond Fund vs. Jhancock Global Equity
Performance |
| Timeline |
| Global Bond Fund |
| Jhancock Global Equity |
Global Bond and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Bond and Jhancock Global
The main advantage of trading using opposite Global Bond and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Bond 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.| Global Bond vs. Jhancock Global Equity | Global Bond vs. Ab Global Risk | Global Bond vs. Ab Global Bond | Global Bond vs. Scharf Global Opportunity |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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