Correlation Between Jhancock Global and Baird Short
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Baird Short 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 Global and Baird Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Global Equity and Baird Short Term Municipal, you can compare the effects of market volatilities on Jhancock Global and Baird Short 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 Global with a short position of Baird Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Baird Short.
Diversification Opportunities for Jhancock Global and Baird Short
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Baird is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Baird Short Term Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Short Term and Jhancock Global 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 Global Equity are associated (or correlated) with Baird Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Short Term has no effect on the direction of Jhancock Global i.e., Jhancock Global and Baird Short go up and down completely randomly.
Pair Corralation between Jhancock Global and Baird Short
Assuming the 90 days horizon Jhancock Global Equity is expected to under-perform the Baird Short. In addition to that, Jhancock Global is 4.76 times more volatile than Baird Short Term Municipal. It trades about -0.03 of its total potential returns per unit of risk. Baird Short Term Municipal is currently generating about 0.11 per unit of volatility. If you would invest 1,000.00 in Baird Short Term Municipal on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Baird Short Term Municipal or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Baird Short Term Municipal
Performance |
| Timeline |
| Jhancock Global Equity |
| Baird Short Term |
Jhancock Global and Baird Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Baird Short
The main advantage of trading using opposite Jhancock Global and Baird Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Baird Short 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 Baird Short will offset losses from the drop in Baird Short's long position.| Jhancock Global vs. Regional Bank Fund | Jhancock Global vs. Regional Bank Fund | Jhancock Global vs. Multimanager Lifestyle Moderate | Jhancock Global vs. Multimanager Lifestyle Balanced |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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