Correlation Between Jhancock Global and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Jhancock Global and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Floating Rate.
Diversification Opportunities for Jhancock Global and Floating Rate
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jhancock and Floating is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Jhancock Global i.e., Jhancock Global and Floating Rate go up and down completely randomly.
Pair Corralation between Jhancock Global and Floating Rate
If you would invest 818.00 in Floating Rate Fund on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Floating Rate Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Floating Rate Fund
Performance |
| Timeline |
| Jhancock Global Equity |
| Floating Rate |
Jhancock Global and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Floating Rate
The main advantage of trading using opposite Jhancock Global and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate'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 |
| Floating Rate vs. Ab Global Bond | Floating Rate vs. Ab Global Real | Floating Rate vs. Jhancock Global Equity | Floating Rate vs. Siit Global Managed |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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