Correlation Between Jhancock Diversified and Europacific Growth
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Europacific Growth 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 Europacific Growth 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 Europacific Growth Fund, you can compare the effects of market volatilities on Jhancock Diversified and Europacific Growth 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 Europacific Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Europacific Growth.
Diversification Opportunities for Jhancock Diversified and Europacific Growth
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Europacific is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Europacific Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth 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 Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Europacific Growth go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Europacific Growth
Assuming the 90 days horizon Jhancock Diversified Macro is expected to under-perform the Europacific Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Diversified Macro is 1.33 times less risky than Europacific Growth. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Europacific Growth Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,053 in Europacific Growth Fund on September 14, 2024 and sell it today you would earn a total of 500.00 from holding Europacific Growth Fund or generate 9.9% 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. Europacific Growth Fund
Performance |
| Timeline |
| Jhancock Diversified |
| Europacific Growth |
Jhancock Diversified and Europacific Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Europacific Growth
The main advantage of trading using opposite Jhancock Diversified and Europacific Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Europacific Growth 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 Europacific Growth will offset losses from the drop in Europacific Growth's long position.| Jhancock Diversified vs. Tiaa Cref Real Estate | Jhancock Diversified vs. Goldman Sachs Real | Jhancock Diversified vs. Neuberger Berman Real | Jhancock Diversified vs. Franklin Real Estate |
| Europacific Growth vs. Artisan High Income | Europacific Growth vs. Franklin High Yield | Europacific Growth vs. Blrc Sgy Mnp | Europacific Growth vs. The National Tax Free |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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