Correlation Between Jhancock Global and Pimco Low
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Pimco Low 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 Pimco Low 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 Pimco Low Duration, you can compare the effects of market volatilities on Jhancock Global and Pimco Low 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 Pimco Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Pimco Low.
Diversification Opportunities for Jhancock Global and Pimco Low
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jhancock and Pimco is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Pimco Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Low Duration 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 Pimco Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Low Duration has no effect on the direction of Jhancock Global i.e., Jhancock Global and Pimco Low go up and down completely randomly.
Pair Corralation between Jhancock Global and Pimco Low
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 5.4 times more return on investment than Pimco Low. However, Jhancock Global is 5.4 times more volatile than Pimco Low Duration. It trades about 0.06 of its potential returns per unit of risk. Pimco Low Duration is currently generating about 0.14 per unit of risk. If you would invest 1,356 in Jhancock Global Equity on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Jhancock Global Equity or generate 0.52% 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. Pimco Low Duration
Performance |
| Timeline |
| Jhancock Global Equity |
| Pimco Low Duration |
Jhancock Global and Pimco Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Pimco Low
The main advantage of trading using opposite Jhancock Global and Pimco Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Pimco Low 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 Pimco Low will offset losses from the drop in Pimco Low's long position.| Jhancock Global vs. Morningstar Global Income | Jhancock Global vs. Franklin Mutual Global | Jhancock Global vs. Ab Global Real |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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