Correlation Between Jhancock Diversified and The Hartford
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and The Hartford 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 The Hartford 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 The Hartford International, you can compare the effects of market volatilities on Jhancock Diversified and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and The Hartford.
Diversification Opportunities for Jhancock Diversified and The Hartford
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and The is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and The Hartford International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Interna 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Interna has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and The Hartford go up and down completely randomly.
Pair Corralation between Jhancock Diversified and The Hartford
Assuming the 90 days horizon Jhancock Diversified is expected to generate 2.05 times less return on investment than The Hartford. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.46 times less risky than The Hartford. It trades about 0.06 of its potential returns per unit of risk. The Hartford International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,732 in The Hartford International on November 3, 2024 and sell it today you would earn a total of 127.00 from holding The Hartford International or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. The Hartford International
Performance |
| Timeline |
| Jhancock Diversified |
| Hartford Interna |
Jhancock Diversified and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and The Hartford
The main advantage of trading using opposite Jhancock Diversified and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Jhancock Diversified vs. Tiaa Cref High Yield | Jhancock Diversified vs. Fidelity Capital Income | Jhancock Diversified vs. Siit High Yield | Jhancock Diversified vs. Lord Abbett Short |
| The Hartford vs. Davis Financial Fund | The Hartford vs. Rmb Mendon Financial | The Hartford vs. Financial Industries Fund | The Hartford vs. John Hancock Money |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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