Correlation Between Core Bond and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Core Bond and Jhancock 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 Core Bond and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Bond Fund and Jhancock Global Equity, you can compare the effects of market volatilities on Core Bond and Jhancock 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 Core Bond with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Bond and Jhancock Global.
Diversification Opportunities for Core Bond and Jhancock Global
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Core and Jhancock is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Core Bond Fund and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity and Core Bond 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 Core Bond Fund are associated (or correlated) with Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of Core Bond i.e., Core Bond and Jhancock Global go up and down completely randomly.
Pair Corralation between Core Bond and Jhancock Global
Assuming the 90 days horizon Core Bond is expected to generate 4.05 times less return on investment than Jhancock Global. But when comparing it to its historical volatility, Core Bond Fund is 1.99 times less risky than Jhancock Global. It trades about 0.01 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,073 in Jhancock Global Equity on October 14, 2024 and sell it today you would earn a total of 80.00 from holding Jhancock Global Equity or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Bond Fund vs. Jhancock Global Equity
Performance |
| Timeline |
| Core Bond Fund |
| Jhancock Global Equity |
Core Bond and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Bond and Jhancock Global
The main advantage of trading using opposite Core Bond and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Bond position performs unexpectedly, Jhancock 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 Jhancock Global will offset losses from the drop in Jhancock Global's long position.| Core Bond vs. Jhancock Global Equity | Core Bond vs. Global Equity Fund | Core Bond vs. Jhancock Global Equity | Core Bond vs. Jhancock Global Equity |
| Jhancock Global vs. Qs Large Cap | Jhancock Global vs. Touchstone Large Cap | Jhancock Global vs. Calvert Moderate Allocation | Jhancock Global vs. Alliancebernstein Global Highome |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |