Correlation Between Jhancock Diversified and Vanguard Emerging
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Vanguard Emerging 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 Vanguard Emerging 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 Vanguard Emerging Markets, you can compare the effects of market volatilities on Jhancock Diversified and Vanguard Emerging 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 Vanguard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Vanguard Emerging.
Diversification Opportunities for Jhancock Diversified and Vanguard Emerging
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jhancock and Vanguard is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Vanguard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Emerging Markets 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 Vanguard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Emerging Markets has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Vanguard Emerging go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Vanguard Emerging
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 1.55 times more return on investment than Vanguard Emerging. However, Jhancock Diversified is 1.55 times more volatile than Vanguard Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Vanguard Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 912.00 in Jhancock Diversified Macro on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Jhancock Diversified Macro or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Vanguard Emerging Markets
Performance |
| Timeline |
| Jhancock Diversified |
| Vanguard Emerging Markets |
Jhancock Diversified and Vanguard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Vanguard Emerging
The main advantage of trading using opposite Jhancock Diversified and Vanguard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Vanguard Emerging 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 Vanguard Emerging will offset losses from the drop in Vanguard Emerging's long position.| Jhancock Diversified vs. Vy Jpmorgan Emerging | Jhancock Diversified vs. Morgan Stanley Emerging | Jhancock Diversified vs. Mid Cap 15x Strategy | Jhancock Diversified vs. Siit Emerging Markets |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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