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 E, 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
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and GCEAX is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Ab Global E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global E 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 E 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 is expected to generate 42.21 times less return on investment than Ab Global. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.34 times less risky than Ab Global. It trades about 0.0 of its potential returns per unit of risk. Ab Global E is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,354 in Ab Global E on September 3, 2024 and sell it today you would earn a total of 434.00 from holding Ab Global E or generate 32.05% 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. Ab Global E
Performance |
| Timeline |
| Jhancock Diversified |
| Ab Global E |
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. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
| Ab Global vs. Jhancock Diversified Macro | Ab Global vs. Delaware Limited Term Diversified | Ab Global vs. Huber Capital Diversified | Ab Global vs. Oppenheimer International Diversified |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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