Correlation Between Jhancock Diversified and Nationwide
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Nationwide 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 Nationwide 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 Nationwide Sp 500, you can compare the effects of market volatilities on Jhancock Diversified and Nationwide 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 Nationwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Nationwide.
Diversification Opportunities for Jhancock Diversified and Nationwide
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Nationwide is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Nationwide Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Sp 500 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 Nationwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Sp 500 has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Nationwide go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Nationwide
Assuming the 90 days horizon Jhancock Diversified is expected to generate 3.69 times less return on investment than Nationwide. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.43 times less risky than Nationwide. It trades about 0.15 of its potential returns per unit of risk. Nationwide Sp 500 is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,707 in Nationwide Sp 500 on September 4, 2024 and sell it today you would earn a total of 162.00 from holding Nationwide Sp 500 or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Nationwide Sp 500
Performance |
| Timeline |
| Jhancock Diversified |
| Nationwide Sp 500 |
Jhancock Diversified and Nationwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Nationwide
The main advantage of trading using opposite Jhancock Diversified and Nationwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Nationwide 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 Nationwide will offset losses from the drop in Nationwide'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 |
| Nationwide vs. Nationwide Investor Destinations | Nationwide vs. Nationwide Investor Destinations | Nationwide vs. Nationwide Investor Destinations | Nationwide vs. Nationwide Global Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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