Correlation Between Huber Capital and J Hancock
Can any of the company-specific risk be diversified away by investing in both Huber Capital and J Hancock 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 Huber Capital and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and J Hancock Ii, you can compare the effects of market volatilities on Huber Capital and J Hancock 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 Huber Capital with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and J Hancock.
Diversification Opportunities for Huber Capital and J Hancock
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huber and JGHTX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii and Huber Capital 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 Huber Capital Diversified are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of Huber Capital i.e., Huber Capital and J Hancock go up and down completely randomly.
Pair Corralation between Huber Capital and J Hancock
Assuming the 90 days horizon Huber Capital is expected to generate 2.43 times less return on investment than J Hancock. In addition to that, Huber Capital is 1.72 times more volatile than J Hancock Ii. It trades about 0.04 of its total potential returns per unit of risk. J Hancock Ii is currently generating about 0.17 per unit of volatility. If you would invest 1,440 in J Hancock Ii on September 13, 2024 and sell it today you would earn a total of 24.00 from holding J Hancock Ii or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Huber Capital Diversified vs. J Hancock Ii
Performance |
| Timeline |
| Huber Capital Diversified |
| J Hancock Ii |
Huber Capital and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and J Hancock
The main advantage of trading using opposite Huber Capital and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, J Hancock 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 J Hancock will offset losses from the drop in J Hancock's long position.| Huber Capital vs. Ppm High Yield | Huber Capital vs. Calvert High Yield | Huber Capital vs. Western Asset High | Huber Capital vs. Siit High Yield |
| J Hancock vs. Regional Bank Fund | J Hancock vs. Regional Bank Fund | J Hancock vs. Multimanager Lifestyle Moderate | J Hancock 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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