Correlation Between Jhancock Global and Volumetric Fund
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Volumetric 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 Volumetric 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 Volumetric Fund Volumetric, you can compare the effects of market volatilities on Jhancock Global and Volumetric 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 Volumetric Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Volumetric Fund.
Diversification Opportunities for Jhancock Global and Volumetric Fund
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Volumetric is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Volumetric Fund Volumetric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volumetric Fund Volu 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 Volumetric Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volumetric Fund Volu has no effect on the direction of Jhancock Global i.e., Jhancock Global and Volumetric Fund go up and down completely randomly.
Pair Corralation between Jhancock Global and Volumetric Fund
Assuming the 90 days horizon Jhancock Global Equity is expected to under-perform the Volumetric Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Global Equity is 1.53 times less risky than Volumetric Fund. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Volumetric Fund Volumetric is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,586 in Volumetric Fund Volumetric on September 13, 2024 and sell it today you would earn a total of 85.00 from holding Volumetric Fund Volumetric or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Jhancock Global Equity vs. Volumetric Fund Volumetric
Performance |
| Timeline |
| Jhancock Global Equity |
| Volumetric Fund Volu |
Jhancock Global and Volumetric Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Volumetric Fund
The main advantage of trading using opposite Jhancock Global and Volumetric Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Volumetric 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 Volumetric Fund will offset losses from the drop in Volumetric Fund'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 |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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