Correlation Between Jhancock Global and Nova Fund
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Nova Fund 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 Nova Fund 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 Nova Fund Class, you can compare the effects of market volatilities on Jhancock Global and Nova Fund 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 Nova Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Nova Fund.
Diversification Opportunities for Jhancock Global and Nova Fund
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jhancock and Nova is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Nova Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Fund Class 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 Nova Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Fund Class has no effect on the direction of Jhancock Global i.e., Jhancock Global and Nova Fund go up and down completely randomly.
Pair Corralation between Jhancock Global and Nova Fund
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 0.57 times more return on investment than Nova Fund. However, Jhancock Global Equity is 1.76 times less risky than Nova Fund. It trades about 0.08 of its potential returns per unit of risk. Nova Fund Class is currently generating about -0.07 per unit of risk. If you would invest 1,222 in Jhancock Global Equity on November 28, 2024 and sell it today you would earn a total of 12.00 from holding Jhancock Global Equity or generate 0.98% 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. Nova Fund Class
Performance |
| Timeline |
| Jhancock Global Equity |
| Nova Fund Class |
Jhancock Global and Nova Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Nova Fund
The main advantage of trading using opposite Jhancock Global and Nova Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Nova Fund 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 Nova Fund will offset losses from the drop in Nova Fund's long position.| Jhancock Global vs. Old Westbury Municipal | Jhancock Global vs. Prudential California Muni | Jhancock Global vs. Ab Municipal Bond | Jhancock Global vs. Us Government Securities |
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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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