Correlation Between Jhancock Diversified and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on Jhancock Diversified and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Mainstay Epoch.
Diversification Opportunities for Jhancock Diversified and Mainstay Epoch
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Mainstay Epoch
Assuming the 90 days horizon Jhancock Diversified is expected to generate 49.17 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.14 times less risky than Mainstay Epoch. It trades about 0.0 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,853 in Mainstay Epoch Global on September 2, 2024 and sell it today you would earn a total of 604.00 from holding Mainstay Epoch Global or generate 32.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Mainstay Epoch Global
Performance |
| Timeline |
| Jhancock Diversified |
| Mainstay Epoch Global |
Jhancock Diversified and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Mainstay Epoch
The main advantage of trading using opposite Jhancock Diversified and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch'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 |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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