Correlation Between Jhancock Diversified and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Eaton Vance 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 Eaton Vance 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 Eaton Vance National, you can compare the effects of market volatilities on Jhancock Diversified and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Eaton Vance.
Diversification Opportunities for Jhancock Diversified and Eaton Vance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jhancock and Eaton is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance National has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Eaton Vance go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Eaton Vance
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 1.31 times more return on investment than Eaton Vance. However, Jhancock Diversified is 1.31 times more volatile than Eaton Vance National. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance National is currently generating about 0.18 per unit of risk. If you would invest 887.00 in Jhancock Diversified Macro on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Jhancock Diversified Macro or generate 1.58% 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. Eaton Vance National
Performance |
| Timeline |
| Jhancock Diversified |
| Eaton Vance National |
Jhancock Diversified and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Eaton Vance
The main advantage of trading using opposite Jhancock Diversified and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. Lord Abbett Diversified | Eaton Vance vs. Principal Lifetime Hybrid | Eaton Vance vs. Davenport Small Cap | Eaton Vance vs. Jhancock Diversified Macro |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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