Correlation Between J Hancock and Power Global
Can any of the company-specific risk be diversified away by investing in both J Hancock and Power 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 Power 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 Power Global Tactical, you can compare the effects of market volatilities on J Hancock and Power 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 Power Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Power Global.
Diversification Opportunities for J Hancock and Power Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JRETX and POWER is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Power Global Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Global Tactical 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 Power Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Global Tactical has no effect on the direction of J Hancock i.e., J Hancock and Power Global go up and down completely randomly.
Pair Corralation between J Hancock and Power Global
Assuming the 90 days horizon J Hancock is expected to generate 1.09 times less return on investment than Power Global. In addition to that, J Hancock is 1.73 times more volatile than Power Global Tactical. It trades about 0.15 of its total potential returns per unit of risk. Power Global Tactical is currently generating about 0.29 per unit of volatility. If you would invest 1,095 in Power Global Tactical on August 29, 2024 and sell it today you would earn a total of 27.00 from holding Power Global Tactical or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
J Hancock Ii vs. Power Global Tactical
Performance |
| Timeline |
| J Hancock Ii |
| Power Global Tactical |
J Hancock and Power Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Power Global
The main advantage of trading using opposite J Hancock and Power Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Power 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 Power Global will offset losses from the drop in Power Global's long position.| J Hancock vs. T Rowe Price | J Hancock vs. Morgan Stanley Global | J Hancock vs. Artisan Global Unconstrained | J Hancock vs. Wasatch Global Opportunities |
| Power Global vs. All Asset Fund | Power Global vs. HUMANA INC | Power Global vs. Aquagold International | Power Global vs. Barloworld Ltd ADR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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