Correlation Between Jhancock Diversified and Investec Emerging
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Investec 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 Investec 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 Investec Emerging Markets, you can compare the effects of market volatilities on Jhancock Diversified and Investec 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 Investec Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Investec Emerging.
Diversification Opportunities for Jhancock Diversified and Investec Emerging
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Investec is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec 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 Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Investec Emerging go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Investec Emerging
Assuming the 90 days horizon Jhancock Diversified is expected to generate 2.82 times less return on investment than Investec Emerging. But when comparing it to its historical volatility, Jhancock Diversified Macro is 1.84 times less risky than Investec Emerging. It trades about 0.07 of its potential returns per unit of risk. Investec Emerging Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,062 in Investec Emerging Markets on November 3, 2024 and sell it today you would earn a total of 23.00 from holding Investec Emerging Markets or generate 2.17% 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. Investec Emerging Markets
Performance |
| Timeline |
| Jhancock Diversified |
| Investec Emerging Markets |
Jhancock Diversified and Investec Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Investec Emerging
The main advantage of trading using opposite Jhancock Diversified and Investec Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Investec 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 Investec Emerging will offset losses from the drop in Investec 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 |
| Investec Emerging vs. Goldman Sachs Short | Investec Emerging vs. Intermediate Bond Fund | Investec Emerging vs. Gmo Emerging Ntry | Investec Emerging vs. Ambrus Core Bond |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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