Correlation Between Jhancock Diversified and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Horizon Active 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 Horizon Active 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 Horizon Active Risk, you can compare the effects of market volatilities on Jhancock Diversified and Horizon Active 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 Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Horizon Active.
Diversification Opportunities for Jhancock Diversified and Horizon Active
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jhancock and Horizon is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Horizon Active Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Risk 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 Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Risk has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Horizon Active go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Horizon Active
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Horizon Active. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 1.14 times less risky than Horizon Active. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Horizon Active Risk is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,702 in Horizon Active Risk on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Horizon Active Risk or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Horizon Active Risk
Performance |
| Timeline |
| Jhancock Diversified |
| Horizon Active Risk |
Jhancock Diversified and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Horizon Active
The main advantage of trading using opposite Jhancock Diversified and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Multimanager Lifestyle Moderate | Jhancock Diversified vs. Multimanager Lifestyle Balanced |
| Horizon Active vs. Deutsche Health And | Horizon Active vs. Alphacentric Lifesci Healthcare | Horizon Active vs. Baron Health Care | Horizon Active vs. The Gabelli Healthcare |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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