Correlation Between Jhancock Multi-index and Retirement Living
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi-index and Retirement Living 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 Jhancock Multi-index and Retirement Living into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Multi Index 2065 and Retirement Living Through, you can compare the effects of market volatilities on Jhancock Multi-index and Retirement Living 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 Jhancock Multi-index with a short position of Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi-index and Retirement Living.
Diversification Opportunities for Jhancock Multi-index and Retirement Living
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jhancock and Retirement is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through and Jhancock Multi-index 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 Jhancock Multi Index 2065 are associated (or correlated) with Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Jhancock Multi-index i.e., Jhancock Multi-index and Retirement Living go up and down completely randomly.
Pair Corralation between Jhancock Multi-index and Retirement Living
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to generate 1.96 times more return on investment than Retirement Living. However, Jhancock Multi-index is 1.96 times more volatile than Retirement Living Through. It trades about 0.26 of its potential returns per unit of risk. Retirement Living Through is currently generating about 0.29 per unit of risk. If you would invest 1,407 in Jhancock Multi Index 2065 on November 2, 2024 and sell it today you would earn a total of 54.00 from holding Jhancock Multi Index 2065 or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Multi Index 2065 vs. Retirement Living Through
Performance |
| Timeline |
| Jhancock Multi Index |
| Retirement Living Through |
Jhancock Multi-index and Retirement Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multi-index and Retirement Living
The main advantage of trading using opposite Jhancock Multi-index and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi-index position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living's long position.| Jhancock Multi-index vs. Regional Bank Fund | Jhancock Multi-index vs. Regional Bank Fund | Jhancock Multi-index vs. Multimanager Lifestyle Moderate | Jhancock Multi-index vs. Multimanager Lifestyle Balanced |
| Retirement Living vs. Regional Bank Fund | Retirement Living vs. Regional Bank Fund | Retirement Living vs. Multimanager Lifestyle Moderate | Retirement Living 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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