Correlation Between Jhancock Disciplined and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined and Elfun Government 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 Disciplined and Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Disciplined Value and Elfun Government Money, you can compare the effects of market volatilities on Jhancock Disciplined and Elfun Government 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 Disciplined with a short position of Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and Elfun Government.
Diversification Opportunities for Jhancock Disciplined and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jhancock and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money and Jhancock Disciplined 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 Disciplined Value are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Jhancock Disciplined i.e., Jhancock Disciplined and Elfun Government go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and Elfun Government
Assuming the 90 days horizon Jhancock Disciplined is expected to generate 26.75 times less return on investment than Elfun Government. But when comparing it to its historical volatility, Jhancock Disciplined Value is 24.07 times less risky than Elfun Government. It trades about 0.04 of its potential returns per unit of risk. Elfun Government Money is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Elfun Government Money on September 26, 2024 and sell it today you would earn a total of 5.00 from holding Elfun Government Money or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.42% |
| Values | Daily Returns |
Jhancock Disciplined Value vs. Elfun Government Money
Performance |
| Timeline |
| Jhancock Disciplined |
| Elfun Government Money |
Jhancock Disciplined and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Disciplined and Elfun Government
The main advantage of trading using opposite Jhancock Disciplined and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.| Jhancock Disciplined vs. Regional Bank Fund | Jhancock Disciplined vs. Regional Bank Fund | Jhancock Disciplined vs. Multimanager Lifestyle Moderate | Jhancock Disciplined vs. Multimanager Lifestyle Balanced |
| Elfun Government vs. Jhancock Disciplined Value | Elfun Government vs. Dunham Large Cap | Elfun Government vs. M Large Cap | Elfun Government vs. Qs Large Cap |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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