Correlation Between Jhancock Diversified and Global Real
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Global Real 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 Global Real 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 Global Real Estate, you can compare the effects of market volatilities on Jhancock Diversified and Global Real 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 Global Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Global Real.
Diversification Opportunities for Jhancock Diversified and Global Real
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Global is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Global Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Real Estate 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 Global Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Real Estate has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Global Real go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Global Real
Assuming the 90 days horizon Jhancock Diversified is expected to generate 107.5 times less return on investment than Global Real. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.71 times less risky than Global Real. It trades about 0.0 of its potential returns per unit of risk. Global Real Estate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 853.00 in Global Real Estate on September 4, 2024 and sell it today you would earn a total of 130.00 from holding Global Real Estate or generate 15.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.93% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Global Real Estate
Performance |
| Timeline |
| Jhancock Diversified |
| Global Real Estate |
Jhancock Diversified and Global Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Global Real
The main advantage of trading using opposite Jhancock Diversified and Global Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Global Real 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 Global Real will offset losses from the drop in Global Real'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 |
| Global Real vs. Strategic Asset Management | Global Real vs. Strategic Asset Management | Global Real vs. Strategic Asset Management | Global Real vs. Strategic Asset Management |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |