Correlation Between Jhancock Multimanager and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Jhancock Multimanager 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 Multimanager 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 Multimanager 2065 and Jhancock Global Equity, you can compare the effects of market volatilities on Jhancock Multimanager 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 Multimanager with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multimanager and Jhancock Global.
Diversification Opportunities for Jhancock Multimanager and Jhancock Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Jhancock is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multimanager 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 Multimanager 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 Multimanager 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 Multimanager i.e., Jhancock Multimanager and Jhancock Global go up and down completely randomly.
Pair Corralation between Jhancock Multimanager and Jhancock Global
Assuming the 90 days horizon Jhancock Multimanager 2065 is expected to generate 1.16 times more return on investment than Jhancock Global. However, Jhancock Multimanager is 1.16 times more volatile than Jhancock Global Equity. It trades about 0.1 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 1,267 in Jhancock Multimanager 2065 on September 1, 2024 and sell it today you would earn a total of 129.00 from holding Jhancock Multimanager 2065 or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Multimanager 2065 vs. Jhancock Global Equity
Performance |
| Timeline |
| Jhancock Multimanager |
| Jhancock Global Equity |
Jhancock Multimanager and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multimanager and Jhancock Global
The main advantage of trading using opposite Jhancock Multimanager and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multimanager 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.The idea behind Jhancock Multimanager 2065 and Jhancock Global Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jhancock Global vs. Ab Bond Inflation | Jhancock Global vs. Guidepath Managed Futures | Jhancock Global vs. Nationwide Inflation Protected Securities | Jhancock Global vs. Lord Abbett Inflation |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |