Correlation Between Jhancock Diversified and Fidelity Salem
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Fidelity Salem 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 Fidelity Salem 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 Fidelity Salem Street, you can compare the effects of market volatilities on Jhancock Diversified and Fidelity Salem 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 Fidelity Salem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Fidelity Salem.
Diversification Opportunities for Jhancock Diversified and Fidelity Salem
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jhancock and Fidelity is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Fidelity Salem Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Salem Street 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 Fidelity Salem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Salem Street has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Fidelity Salem go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Fidelity Salem
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 0.98 times more return on investment than Fidelity Salem. However, Jhancock Diversified Macro is 1.02 times less risky than Fidelity Salem. It trades about 0.33 of its potential returns per unit of risk. Fidelity Salem Street is currently generating about 0.18 per unit of risk. If you would invest 883.00 in Jhancock Diversified Macro on September 14, 2024 and sell it today you would earn a total of 31.00 from holding Jhancock Diversified Macro or generate 3.51% 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. Fidelity Salem Street
Performance |
| Timeline |
| Jhancock Diversified |
| Fidelity Salem Street |
Jhancock Diversified and Fidelity Salem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Fidelity Salem
The main advantage of trading using opposite Jhancock Diversified and Fidelity Salem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Fidelity Salem 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 Fidelity Salem will offset losses from the drop in Fidelity Salem's long position.| Jhancock Diversified vs. Tiaa Cref Real Estate | Jhancock Diversified vs. Goldman Sachs Real | Jhancock Diversified vs. Neuberger Berman Real | Jhancock Diversified vs. Franklin Real Estate |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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