Correlation Between Jhancock Global and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Sterling Capital 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 Sterling Capital 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 Sterling Capital Mid, you can compare the effects of market volatilities on Jhancock Global and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Sterling Capital.
Diversification Opportunities for Jhancock Global and Sterling Capital
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Sterling is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Sterling Capital Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Mid 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Mid has no effect on the direction of Jhancock Global i.e., Jhancock Global and Sterling Capital go up and down completely randomly.
Pair Corralation between Jhancock Global and Sterling Capital
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 0.54 times more return on investment than Sterling Capital. However, Jhancock Global Equity is 1.87 times less risky than Sterling Capital. It trades about 0.06 of its potential returns per unit of risk. Sterling Capital Mid is currently generating about 0.02 per unit of risk. If you would invest 1,295 in Jhancock Global Equity on September 13, 2024 and sell it today you would earn a total of 63.00 from holding Jhancock Global Equity or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Sterling Capital Mid
Performance |
| Timeline |
| Jhancock Global Equity |
| Sterling Capital Mid |
Jhancock Global and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Sterling Capital
The main advantage of trading using opposite Jhancock Global and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital'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 |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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