Correlation Between Intrepid Endurance and Jhancock Disciplined
Can any of the company-specific risk be diversified away by investing in both Intrepid Endurance and Jhancock Disciplined 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 Intrepid Endurance and Jhancock Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrepid Endurance Fund and Jhancock Disciplined Value, you can compare the effects of market volatilities on Intrepid Endurance and Jhancock Disciplined 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 Intrepid Endurance with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Endurance and Jhancock Disciplined.
Diversification Opportunities for Intrepid Endurance and Jhancock Disciplined
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intrepid and Jhancock is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Endurance Fund and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Intrepid Endurance 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 Intrepid Endurance Fund are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Intrepid Endurance i.e., Intrepid Endurance and Jhancock Disciplined go up and down completely randomly.
Pair Corralation between Intrepid Endurance and Jhancock Disciplined
Assuming the 90 days horizon Intrepid Endurance is expected to generate 2.14 times less return on investment than Jhancock Disciplined. But when comparing it to its historical volatility, Intrepid Endurance Fund is 1.13 times less risky than Jhancock Disciplined. It trades about 0.11 of its potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,619 in Jhancock Disciplined Value on August 31, 2024 and sell it today you would earn a total of 132.00 from holding Jhancock Disciplined Value or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Intrepid Endurance Fund vs. Jhancock Disciplined Value
Performance |
| Timeline |
| Intrepid Endurance |
| Jhancock Disciplined |
Intrepid Endurance and Jhancock Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrepid Endurance and Jhancock Disciplined
The main advantage of trading using opposite Intrepid Endurance and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrepid Endurance position performs unexpectedly, Jhancock Disciplined 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 Disciplined will offset losses from the drop in Jhancock Disciplined's long position.| Intrepid Endurance vs. The Hartford Midcap | Intrepid Endurance vs. Mfs Emerging Markets | Intrepid Endurance vs. Wells Fargo Special | Intrepid Endurance vs. Baron Emerging Markets |
| Jhancock Disciplined vs. Oakmark International Fund | Jhancock Disciplined vs. Intrepid Endurance Fund | Jhancock Disciplined vs. HUMANA INC | Jhancock Disciplined vs. Aquagold International |
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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