Correlation Between Jhancock Diversified and Inflation-protected
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Inflation-protected 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 Inflation-protected 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 Inflation Protected Bond Fund, you can compare the effects of market volatilities on Jhancock Diversified and Inflation-protected 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 Inflation-protected. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Inflation-protected.
Diversification Opportunities for Jhancock Diversified and Inflation-protected
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Inflation-protected is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Inflation Protected Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protected 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 Inflation-protected. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protected has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Inflation-protected go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Inflation-protected
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 1.28 times more return on investment than Inflation-protected. However, Jhancock Diversified is 1.28 times more volatile than Inflation Protected Bond Fund. It trades about 0.15 of its potential returns per unit of risk. Inflation Protected Bond Fund is currently generating about 0.08 per unit of risk. If you would invest 904.00 in Jhancock Diversified Macro on November 1, 2024 and sell it today you would earn a total of 14.00 from holding Jhancock Diversified Macro or generate 1.55% 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. Inflation Protected Bond Fund
Performance |
| Timeline |
| Jhancock Diversified |
| Inflation Protected |
Jhancock Diversified and Inflation-protected Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Inflation-protected
The main advantage of trading using opposite Jhancock Diversified and Inflation-protected positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Inflation-protected 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 Inflation-protected will offset losses from the drop in Inflation-protected's long position.| Jhancock Diversified vs. Alpine Ultra Short | Jhancock Diversified vs. Aqr Sustainable Long Short | Jhancock Diversified vs. Leader Short Term Bond | Jhancock Diversified vs. Transam Short Term Bond |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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