Correlation Between Jhancock Diversified and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Allianzgi Nfj 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 Allianzgi Nfj 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 Allianzgi Nfj Small Cap, you can compare the effects of market volatilities on Jhancock Diversified and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Allianzgi Nfj.
Diversification Opportunities for Jhancock Diversified and Allianzgi Nfj
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JHancock and Allianzgi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small 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 Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Allianzgi Nfj
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Allianzgi Nfj. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 2.44 times less risky than Allianzgi Nfj. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Allianzgi Nfj Small Cap is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,636 in Allianzgi Nfj Small Cap on August 30, 2024 and sell it today you would earn a total of 125.00 from holding Allianzgi Nfj Small Cap or generate 7.64% 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. Allianzgi Nfj Small Cap
Performance |
| Timeline |
| Jhancock Diversified |
| Allianzgi Nfj Small |
Jhancock Diversified and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Allianzgi Nfj
The main advantage of trading using opposite Jhancock Diversified and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.The idea behind Jhancock Diversified Macro and Allianzgi Nfj Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Allianzgi Nfj vs. Allianzgi Nfj International | Allianzgi Nfj vs. Allianzgi Vertible Fund | Allianzgi Nfj vs. Allianzgi Nfj Mid Cap | Allianzgi Nfj vs. Allianzgi Focused Growth |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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