Correlation Between Jhancock Global and American High
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and American High 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 American High 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 American High Income, you can compare the effects of market volatilities on Jhancock Global and American High 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 American High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and American High.
Diversification Opportunities for Jhancock Global and American High
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and American is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and American High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American High Income 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 American High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American High Income has no effect on the direction of Jhancock Global i.e., Jhancock Global and American High go up and down completely randomly.
Pair Corralation between Jhancock Global and American High
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 2.69 times more return on investment than American High. However, Jhancock Global is 2.69 times more volatile than American High Income. It trades about 0.1 of its potential returns per unit of risk. American High Income is currently generating about 0.25 per unit of risk. If you would invest 1,166 in Jhancock Global Equity on September 14, 2024 and sell it today you would earn a total of 197.00 from holding Jhancock Global Equity or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Jhancock Global Equity vs. American High Income
Performance |
| Timeline |
| Jhancock Global Equity |
| American High Income |
Jhancock Global and American High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and American High
The main advantage of trading using opposite Jhancock Global and American High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, American High 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 American High will offset losses from the drop in American High's long position.| Jhancock Global vs. Morningstar Global Income | Jhancock Global vs. Franklin Mutual Global | Jhancock Global vs. Ab Global Real |
| American High vs. Jhancock Global Equity | American High vs. Dreyfusstandish Global Fixed | American High vs. Legg Mason Global | American High vs. 361 Global Longshort |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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