Correlation Between J Hancock and Ms Global
Can any of the company-specific risk be diversified away by investing in both J Hancock and Ms 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 Ms 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 Ms Global Fixed, you can compare the effects of market volatilities on J Hancock and Ms 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 Ms Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Ms Global.
Diversification Opportunities for J Hancock and Ms Global
Significant diversification
The 3 months correlation between JRETX and MFIRX is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Ms Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ms Global Fixed 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 Ms Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ms Global Fixed has no effect on the direction of J Hancock i.e., J Hancock and Ms Global go up and down completely randomly.
Pair Corralation between J Hancock and Ms Global
Assuming the 90 days horizon J Hancock Ii is expected to generate 4.36 times more return on investment than Ms Global. However, J Hancock is 4.36 times more volatile than Ms Global Fixed. It trades about 0.1 of its potential returns per unit of risk. Ms Global Fixed is currently generating about 0.17 per unit of risk. If you would invest 1,179 in J Hancock Ii on November 9, 2024 and sell it today you would earn a total of 244.00 from holding J Hancock Ii or generate 20.7% 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. Ms Global Fixed
Performance |
| Timeline |
| J Hancock Ii |
| Ms Global Fixed |
J Hancock and Ms Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Ms Global
The main advantage of trading using opposite J Hancock and Ms Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Ms 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 Ms Global will offset losses from the drop in Ms Global's long position.| J Hancock vs. Putnam Global Financials | J Hancock vs. Angel Oak Financial | J Hancock vs. John Hancock Financial | J Hancock vs. Blackrock Financial Institutions |
| Ms Global vs. Davis Government Bond | Ms Global vs. Inverse Government Long | Ms Global vs. Great West Government Mortgage | Ms Global vs. Mainstay Government 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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