Correlation Between Jhancock Global and High Yield
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and High Yield 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 High Yield 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 High Yield Bond, you can compare the effects of market volatilities on Jhancock Global and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and High Yield.
Diversification Opportunities for Jhancock Global and High Yield
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jhancock and High is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and High Yield Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Bond 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Bond has no effect on the direction of Jhancock Global i.e., Jhancock Global and High Yield go up and down completely randomly.
Pair Corralation between Jhancock Global and High Yield
Assuming the 90 days horizon Jhancock Global Equity is expected to under-perform the High Yield. In addition to that, Jhancock Global is 5.65 times more volatile than High Yield Bond. It trades about -0.02 of its total potential returns per unit of risk. High Yield Bond is currently generating about 0.23 per unit of volatility. If you would invest 902.00 in High Yield Bond on October 22, 2024 and sell it today you would earn a total of 84.00 from holding High Yield Bond or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. High Yield Bond
Performance |
| Timeline |
| Jhancock Global Equity |
| High Yield Bond |
Jhancock Global and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and High Yield
The main advantage of trading using opposite Jhancock Global and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Jhancock Global vs. Small Pany Growth | Jhancock Global vs. Qs Defensive Growth | Jhancock Global vs. Ab Small Cap | Jhancock Global vs. Sp Smallcap 600 |
| High Yield vs. Touchstone Ultra Short | High Yield vs. Delaware Investments Ultrashort | High Yield vs. Blackrock Global Longshort | High Yield vs. Transam Short Term Bond |
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.
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