Correlation Between J Hancock and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both J Hancock and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Balanced, you can compare the effects of market volatilities on J Hancock and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Multimanager Lifestyle.
Diversification Opportunities for J Hancock and Multimanager Lifestyle
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JRETX and Multimanager is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Multimanager Lifestyle Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of J Hancock i.e., J Hancock and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between J Hancock and Multimanager Lifestyle
Assuming the 90 days horizon J Hancock Ii is expected to generate 1.49 times more return on investment than Multimanager Lifestyle. However, J Hancock is 1.49 times more volatile than Multimanager Lifestyle Balanced. It trades about 0.12 of its potential returns per unit of risk. Multimanager Lifestyle Balanced is currently generating about 0.13 per unit of risk. If you would invest 1,152 in J Hancock Ii on August 25, 2024 and sell it today you would earn a total of 286.00 from holding J Hancock Ii or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Hancock Ii vs. Multimanager Lifestyle Balance
Performance |
| Timeline |
| J Hancock Ii |
| Multimanager Lifestyle |
J Hancock and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Multimanager Lifestyle
The main advantage of trading using opposite J Hancock and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |