Correlation Between Jhancock Multi and Georgia Tax-free
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi and Georgia Tax-free 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 and Georgia Tax-free 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 Georgia Tax Free Bond, you can compare the effects of market volatilities on Jhancock Multi and Georgia Tax-free 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 with a short position of Georgia Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi and Georgia Tax-free.
Diversification Opportunities for Jhancock Multi and Georgia Tax-free
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Georgia is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Georgia Tax Free Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Georgia Tax Free and Jhancock Multi 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 Georgia Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Georgia Tax Free has no effect on the direction of Jhancock Multi i.e., Jhancock Multi and Georgia Tax-free go up and down completely randomly.
Pair Corralation between Jhancock Multi and Georgia Tax-free
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to generate 2.99 times more return on investment than Georgia Tax-free. However, Jhancock Multi is 2.99 times more volatile than Georgia Tax Free Bond. It trades about 0.13 of its potential returns per unit of risk. Georgia Tax Free Bond is currently generating about 0.1 per unit of risk. If you would invest 1,195 in Jhancock Multi Index 2065 on August 25, 2024 and sell it today you would earn a total of 292.00 from holding Jhancock Multi Index 2065 or generate 24.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Multi Index 2065 vs. Georgia Tax Free Bond
Performance |
| Timeline |
| Jhancock Multi Index |
| Georgia Tax Free |
Jhancock Multi and Georgia Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multi and Georgia Tax-free
The main advantage of trading using opposite Jhancock Multi and Georgia Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi position performs unexpectedly, Georgia Tax-free 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 Georgia Tax-free will offset losses from the drop in Georgia Tax-free's long position.| Jhancock Multi vs. Georgia Tax Free Bond | Jhancock Multi vs. Pace Municipal Fixed | Jhancock Multi vs. Pace Municipal Fixed | Jhancock Multi vs. Nuveen Minnesota Municipal |
| Georgia Tax-free vs. New Jersey Tax Free | Georgia Tax-free vs. Maryland Tax Free Bond | Georgia Tax-free vs. New York Tax Free | Georgia Tax-free vs. Virginia Tax Free Bond |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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