Correlation Between Jhancock Diversified and Columbia Emerging
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Columbia Emerging 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 Columbia Emerging 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 Columbia Emerging Markets, you can compare the effects of market volatilities on Jhancock Diversified and Columbia Emerging 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 Columbia Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Columbia Emerging.
Diversification Opportunities for Jhancock Diversified and Columbia Emerging
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Columbia is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Columbia Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Emerging Markets 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 Columbia Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Emerging Markets has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Columbia Emerging go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Columbia Emerging
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 1.5 times more return on investment than Columbia Emerging. However, Jhancock Diversified is 1.5 times more volatile than Columbia Emerging Markets. It trades about 0.1 of its potential returns per unit of risk. Columbia Emerging Markets is currently generating about 0.07 per unit of risk. If you would invest 887.00 in Jhancock Diversified Macro on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Jhancock Diversified Macro or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Columbia Emerging Markets
Performance |
| Timeline |
| Jhancock Diversified |
| Columbia Emerging Markets |
Jhancock Diversified and Columbia Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Columbia Emerging
The main advantage of trading using opposite Jhancock Diversified and Columbia Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Columbia Emerging 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 Columbia Emerging will offset losses from the drop in Columbia Emerging's long position.| Jhancock Diversified vs. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
| Columbia Emerging vs. Jhancock Diversified Macro | Columbia Emerging vs. Adams Diversified Equity | Columbia Emerging vs. Delaware Limited Term Diversified | Columbia Emerging vs. Tax Managed Mid 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |