Correlation Between Jhancock Global and Calvert Moderate
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Calvert Moderate 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 Calvert Moderate 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 Calvert Moderate Allocation, you can compare the effects of market volatilities on Jhancock Global and Calvert Moderate 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 Calvert Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Calvert Moderate.
Diversification Opportunities for Jhancock Global and Calvert Moderate
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jhancock and Calvert is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Calvert Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Moderate All 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 Calvert Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Moderate All has no effect on the direction of Jhancock Global i.e., Jhancock Global and Calvert Moderate go up and down completely randomly.
Pair Corralation between Jhancock Global and Calvert Moderate
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 1.11 times more return on investment than Calvert Moderate. However, Jhancock Global is 1.11 times more volatile than Calvert Moderate Allocation. It trades about 0.09 of its potential returns per unit of risk. Calvert Moderate Allocation is currently generating about 0.08 per unit of risk. If you would invest 1,129 in Jhancock Global Equity on September 12, 2024 and sell it today you would earn a total of 229.00 from holding Jhancock Global Equity or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Calvert Moderate Allocation
Performance |
| Timeline |
| Jhancock Global Equity |
| Calvert Moderate All |
Jhancock Global and Calvert Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Calvert Moderate
The main advantage of trading using opposite Jhancock Global and Calvert Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Calvert Moderate 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 Calvert Moderate will offset losses from the drop in Calvert Moderate's long position.| Jhancock Global vs. John Hancock Financial | Jhancock Global vs. Blackrock Financial Institutions | Jhancock Global vs. Angel Oak Financial | Jhancock Global vs. Icon Financial Fund |
| Calvert Moderate vs. Legg Mason Global | Calvert Moderate vs. Barings Global Floating | Calvert Moderate vs. Jhancock Global Equity | Calvert Moderate vs. Mirova Global Green |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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