Correlation Between Jhancock Multi-index and Core Bond
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi-index and Core Bond 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 Core Bond 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 Core Bond Fund, you can compare the effects of market volatilities on Jhancock Multi-index and Core Bond 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 Core Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi-index and Core Bond.
Diversification Opportunities for Jhancock Multi-index and Core Bond
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Core is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Core Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Bond Fund 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 Core Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Bond Fund has no effect on the direction of Jhancock Multi-index i.e., Jhancock Multi-index and Core Bond go up and down completely randomly.
Pair Corralation between Jhancock Multi-index and Core Bond
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to under-perform the Core Bond. In addition to that, Jhancock Multi-index is 3.79 times more volatile than Core Bond Fund. It trades about -0.31 of its total potential returns per unit of risk. Core Bond Fund is currently generating about -0.5 per unit of volatility. If you would invest 1,102 in Core Bond Fund on October 13, 2024 and sell it today you would lose (37.00) from holding Core Bond Fund or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jhancock Multi Index 2065 vs. Core Bond Fund
Performance |
| Timeline |
| Jhancock Multi Index |
| Core Bond Fund |
Jhancock Multi-index and Core Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multi-index and Core Bond
The main advantage of trading using opposite Jhancock Multi-index and Core Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi-index position performs unexpectedly, Core Bond 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 Core Bond will offset losses from the drop in Core Bond'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 |
| Core Bond vs. Regional Bank Fund | Core Bond vs. Regional Bank Fund | Core Bond vs. Multimanager Lifestyle Moderate | Core Bond 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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