Correlation Between Jhancock Diversified and Total Return
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Total Return 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 Total Return 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 Total Return Fund, you can compare the effects of market volatilities on Jhancock Diversified and Total Return 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 Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Total Return.
Diversification Opportunities for Jhancock Diversified and Total Return
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Total is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Total Return Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return 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 Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Total Return go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Total Return
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 1.49 times more return on investment than Total Return. However, Jhancock Diversified is 1.49 times more volatile than Total Return Fund. It trades about 0.15 of its potential returns per unit of risk. Total Return Fund is currently generating about 0.15 per unit of risk. If you would invest 887.00 in Jhancock Diversified Macro on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Jhancock Diversified Macro or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Total Return Fund
Performance |
| Timeline |
| Jhancock Diversified |
| Total Return |
Jhancock Diversified and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Total Return
The main advantage of trading using opposite Jhancock Diversified and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return'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 |
| Total Return vs. Pimco Rae Worldwide | Total Return vs. Pimco Rae Worldwide | Total Return vs. Pimco Rae Worldwide | Total Return vs. Pimco Rae Worldwide |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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