Correlation Between Jhancock Diversified and Ab Global
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Ab 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 Diversified and Ab Global 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 Ab Global Risk, you can compare the effects of market volatilities on Jhancock Diversified and Ab 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 Diversified with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Ab Global.
Diversification Opportunities for Jhancock Diversified and Ab Global
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jhancock and CBSYX is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Ab Global go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Ab Global
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 0.22 times more return on investment than Ab Global. However, Jhancock Diversified Macro is 4.51 times less risky than Ab Global. It trades about 0.01 of its potential returns per unit of risk. Ab Global Risk is currently generating about -0.16 per unit of risk. If you would invest 904.00 in Jhancock Diversified Macro on September 22, 2024 and sell it today you would earn a total of 2.00 from holding Jhancock Diversified Macro or generate 0.22% 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. Ab Global Risk
Performance |
| Timeline |
| Jhancock Diversified |
| Ab Global Risk |
Jhancock Diversified and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Ab Global
The main advantage of trading using opposite Jhancock Diversified and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Ab 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 Ab Global will offset losses from the drop in Ab Global'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 |
| Ab Global vs. Cardinal Small Cap | Ab Global vs. Needham Small Cap | Ab Global vs. Jhancock Diversified Macro | Ab Global vs. Df Dent Small |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |