Correlation Between Jhancock Diversified and Pax Balanced
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Pax Balanced 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 Pax Balanced 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 Pax Balanced Fund, you can compare the effects of market volatilities on Jhancock Diversified and Pax Balanced 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 Pax Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Pax Balanced.
Diversification Opportunities for Jhancock Diversified and Pax Balanced
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Pax is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Pax Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pax Balanced 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 Pax Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pax Balanced has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Pax Balanced go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Pax Balanced
Assuming the 90 days horizon Jhancock Diversified is expected to generate 20.0 times less return on investment than Pax Balanced. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.03 times less risky than Pax Balanced. It trades about 0.0 of its potential returns per unit of risk. Pax Balanced Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,436 in Pax Balanced Fund on September 3, 2024 and sell it today you would earn a total of 338.00 from holding Pax Balanced Fund or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Pax Balanced Fund
Performance |
| Timeline |
| Jhancock Diversified |
| Pax Balanced |
Jhancock Diversified and Pax Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Pax Balanced
The main advantage of trading using opposite Jhancock Diversified and Pax Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Pax Balanced 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 Pax Balanced will offset losses from the drop in Pax Balanced'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 |
| Pax Balanced vs. Virtus Convertible | Pax Balanced vs. Allianzgi Convertible Income | Pax Balanced vs. Rationalpier 88 Convertible | Pax Balanced vs. Lord Abbett Convertible |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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