Correlation Between Jhancock Multi-index and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi-index and Jhancock Global 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 Jhancock Global 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 Jhancock Global Equity, you can compare the effects of market volatilities on Jhancock Multi-index and Jhancock Global 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 Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi-index and Jhancock Global.
Diversification Opportunities for Jhancock Multi-index and Jhancock Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Jhancock is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity 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 Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of Jhancock Multi-index i.e., Jhancock Multi-index and Jhancock Global go up and down completely randomly.
Pair Corralation between Jhancock Multi-index and Jhancock Global
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to generate 1.04 times more return on investment than Jhancock Global. However, Jhancock Multi-index is 1.04 times more volatile than Jhancock Global Equity. It trades about 0.09 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.06 per unit of risk. If you would invest 1,107 in Jhancock Multi Index 2065 on September 3, 2024 and sell it today you would earn a total of 403.00 from holding Jhancock Multi Index 2065 or generate 36.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Multi Index 2065 vs. Jhancock Global Equity
Performance |
| Timeline |
| Jhancock Multi Index |
| Jhancock Global Equity |
Jhancock Multi-index and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multi-index and Jhancock Global
The main advantage of trading using opposite Jhancock Multi-index and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi-index position performs unexpectedly, Jhancock Global 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 Global will offset losses from the drop in Jhancock Global's long position.| Jhancock Multi-index vs. Commonwealth Global Fund | Jhancock Multi-index vs. Ab Global Real | Jhancock Multi-index vs. Alliancebernstein Global High | Jhancock Multi-index vs. Legg Mason Global |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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