Correlation Between Jhancock Diversified and Voya Us
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Voya Us 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 Voya Us 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 Voya Stock Index, you can compare the effects of market volatilities on Jhancock Diversified and Voya Us 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 Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Voya Us.
Diversification Opportunities for Jhancock Diversified and Voya Us
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Voya is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index 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 Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Voya Us go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Voya Us
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Voya Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 1.53 times less risky than Voya Us. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Voya Stock Index is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,662 in Voya Stock Index on September 4, 2024 and sell it today you would earn a total of 355.00 from holding Voya Stock Index or generate 21.36% 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. Voya Stock Index
Performance |
| Timeline |
| Jhancock Diversified |
| Voya Stock Index |
Jhancock Diversified and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Voya Us
The main advantage of trading using opposite Jhancock Diversified and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Voya Us 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 Voya Us will offset losses from the drop in Voya Us' 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 |
| Voya Us vs. Voya Bond Index | Voya Us vs. Voya Bond Index | Voya Us vs. Voya Limited Maturity | Voya Us vs. Voya Limited Maturity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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