Correlation Between J Hancock and Ab Impact
Can any of the company-specific risk be diversified away by investing in both J Hancock and Ab Impact 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 Ab Impact 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 Ab Impact Municipal, you can compare the effects of market volatilities on J Hancock and Ab Impact 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 Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Ab Impact.
Diversification Opportunities for J Hancock and Ab Impact
Average diversification
The 3 months correlation between JRETX and ABIMX is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal 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 Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of J Hancock i.e., J Hancock and Ab Impact go up and down completely randomly.
Pair Corralation between J Hancock and Ab Impact
Assuming the 90 days horizon J Hancock Ii is expected to generate 2.99 times more return on investment than Ab Impact. However, J Hancock is 2.99 times more volatile than Ab Impact Municipal. It trades about 0.17 of its potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.44 per unit of risk. If you would invest 1,441 in J Hancock Ii on September 13, 2024 and sell it today you would earn a total of 24.00 from holding J Hancock Ii or generate 1.67% 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. Ab Impact Municipal
Performance |
| Timeline |
| J Hancock Ii |
| Ab Impact Municipal |
J Hancock and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Ab Impact
The main advantage of trading using opposite J Hancock and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| J Hancock vs. Regional Bank Fund | J Hancock vs. Regional Bank Fund | J Hancock vs. Multimanager Lifestyle Moderate | J Hancock vs. Multimanager Lifestyle Balanced |
| Ab Impact vs. Vanguard Small Cap Value | Ab Impact vs. Heartland Value Plus | Ab Impact vs. Royce Opportunity Fund | Ab Impact vs. Great West Loomis Sayles |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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