Correlation Between Jhancock Global and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Boston Partners 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 Boston Partners 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 Boston Partners Small, you can compare the effects of market volatilities on Jhancock Global and Boston Partners 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 Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Boston Partners.
Diversification Opportunities for Jhancock Global and Boston Partners
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Boston is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Boston Partners Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Small 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Small has no effect on the direction of Jhancock Global i.e., Jhancock Global and Boston Partners go up and down completely randomly.
Pair Corralation between Jhancock Global and Boston Partners
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 0.53 times more return on investment than Boston Partners. However, Jhancock Global Equity is 1.9 times less risky than Boston Partners. It trades about 0.1 of its potential returns per unit of risk. Boston Partners Small is currently generating about 0.03 per unit of risk. If you would invest 1,043 in Jhancock Global Equity on September 3, 2024 and sell it today you would earn a total of 348.00 from holding Jhancock Global Equity or generate 33.37% 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. Boston Partners Small
Performance |
| Timeline |
| Jhancock Global Equity |
| Boston Partners Small |
Jhancock Global and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Boston Partners
The main advantage of trading using opposite Jhancock Global and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Jhancock Global vs. Chase Growth Fund | Jhancock Global vs. L Abbett Growth | Jhancock Global vs. Pace Smallmedium Growth | Jhancock Global vs. Qs Moderate Growth |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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