Correlation Between Jhancock Global and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Kinetics Global 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 Kinetics Global 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 Kinetics Global Fund, you can compare the effects of market volatilities on Jhancock Global and Kinetics Global 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 Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Kinetics Global.
Diversification Opportunities for Jhancock Global and Kinetics Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Kinetics is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global 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 Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Jhancock Global i.e., Jhancock Global and Kinetics Global go up and down completely randomly.
Pair Corralation between Jhancock Global and Kinetics Global
Assuming the 90 days horizon Jhancock Global Equity is expected to under-perform the Kinetics Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Global Equity is 4.18 times less risky than Kinetics Global. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Kinetics Global Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,523 in Kinetics Global Fund on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Kinetics Global Fund or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jhancock Global Equity vs. Kinetics Global Fund
Performance |
| Timeline |
| Jhancock Global Equity |
| Kinetics Global |
Jhancock Global and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Kinetics Global
The main advantage of trading using opposite Jhancock Global and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Kinetics Global 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 Kinetics Global will offset losses from the drop in Kinetics Global'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 |
| Kinetics Global vs. Pace Smallmedium Value | Kinetics Global vs. Small Pany Growth | Kinetics Global vs. Champlain Small | Kinetics Global vs. Glg Intl Small |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |