Correlation Between J Hancock and Barings Global
Can any of the company-specific risk be diversified away by investing in both J Hancock and Barings Global 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 J Hancock and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Hancock Ii and Barings Global Floating, you can compare the effects of market volatilities on J Hancock and Barings Global 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 J Hancock with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Barings Global.
Diversification Opportunities for J Hancock and Barings Global
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JGHTX and Barings is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating and J Hancock 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 J Hancock Ii are associated (or correlated) with Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of J Hancock i.e., J Hancock and Barings Global go up and down completely randomly.
Pair Corralation between J Hancock and Barings Global
Assuming the 90 days horizon J Hancock Ii is expected to under-perform the Barings Global. In addition to that, J Hancock is 4.41 times more volatile than Barings Global Floating. It trades about -0.03 of its total potential returns per unit of risk. Barings Global Floating is currently generating about 0.17 per unit of volatility. If you would invest 860.00 in Barings Global Floating on November 27, 2024 and sell it today you would earn a total of 15.00 from holding Barings Global Floating or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Hancock Ii vs. Barings Global Floating
Performance |
| Timeline |
| J Hancock Ii |
| Barings Global Floating |
J Hancock and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Barings Global
The main advantage of trading using opposite J Hancock and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Barings Global 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 Barings Global will offset losses from the drop in Barings Global's long position.| J Hancock vs. Vanguard Intermediate Term Investment Grade | J Hancock vs. Ab Bond Inflation | J Hancock vs. Ambrus Core Bond | J Hancock vs. Old Westbury Municipal |
| Barings Global vs. Bbh Intermediate Municipal | Barings Global vs. Intermediate Term Bond Fund | Barings Global vs. Franklin Government Money | Barings Global vs. Intermediate Bond Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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