Correlation Between Greenspring Fund and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund 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 Greenspring Fund and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenspring Fund Retail and Jhancock Global Equity, you can compare the effects of market volatilities on Greenspring Fund 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 Greenspring Fund with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Jhancock Global.
Diversification Opportunities for Greenspring Fund and Jhancock Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenspring and Jhancock is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail 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 Greenspring Fund 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 Greenspring Fund Retail 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 Greenspring Fund i.e., Greenspring Fund and Jhancock Global go up and down completely randomly.
Pair Corralation between Greenspring Fund and Jhancock Global
Assuming the 90 days horizon Greenspring Fund Retail is expected to generate 1.16 times more return on investment than Jhancock Global. However, Greenspring Fund is 1.16 times more volatile than Jhancock Global Equity. It trades about 0.23 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.14 per unit of risk. If you would invest 2,530 in Greenspring Fund Retail on October 23, 2024 and sell it today you would earn a total of 76.00 from holding Greenspring Fund Retail or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Jhancock Global Equity
Performance |
| Timeline |
| Greenspring Fund Retail |
| Jhancock Global Equity |
Greenspring Fund and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Jhancock Global
The main advantage of trading using opposite Greenspring Fund and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund 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.| Greenspring Fund vs. Berwyn Income Fund | Greenspring Fund vs. Fpa Crescent Fund | Greenspring Fund vs. James Balanced Golden | Greenspring Fund vs. Permanent Portfolio Class |
| Jhancock Global vs. Gmo Global Equity | Jhancock Global vs. Quantitative Longshort Equity | Jhancock Global vs. Dreyfusstandish Global Fixed | Jhancock Global vs. Greenspring Fund Retail |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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