Correlation Between Jhancock Diversified and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Credit Suisse 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 Diversified and Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Credit Suisse Modity, you can compare the effects of market volatilities on Jhancock Diversified and Credit Suisse 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 Diversified with a short position of Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Credit Suisse.
Diversification Opportunities for Jhancock Diversified and Credit Suisse
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Credit is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Credit Suisse Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Modity and Jhancock Diversified 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 Diversified Macro are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Modity has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Credit Suisse go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Credit Suisse
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Credit Suisse. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 1.21 times less risky than Credit Suisse. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Credit Suisse Modity is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,849 in Credit Suisse Modity on September 1, 2024 and sell it today you would earn a total of 69.00 from holding Credit Suisse Modity or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Credit Suisse Modity
Performance |
| Timeline |
| Jhancock Diversified |
| Credit Suisse Modity |
Jhancock Diversified and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Credit Suisse
The main advantage of trading using opposite Jhancock Diversified and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Jhancock Diversified vs. Ab Small Cap | Jhancock Diversified vs. Baird Smallmid Cap | Jhancock Diversified vs. Champlain Small | Jhancock Diversified vs. Small Midcap Dividend Income |
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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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