Correlation Between Multi-index 2010 and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Multi-index 2010 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 Multi-index 2010 and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Index 2010 Lifetime and Jhancock Global Equity, you can compare the effects of market volatilities on Multi-index 2010 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 Multi-index 2010 with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-index 2010 and Jhancock Global.
Diversification Opportunities for Multi-index 2010 and Jhancock Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi-index and Jhancock is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Multi Index 2010 Lifetime 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 Multi-index 2010 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 Multi Index 2010 Lifetime 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 Multi-index 2010 i.e., Multi-index 2010 and Jhancock Global go up and down completely randomly.
Pair Corralation between Multi-index 2010 and Jhancock Global
Assuming the 90 days horizon Multi-index 2010 is expected to generate 1.41 times less return on investment than Jhancock Global. But when comparing it to its historical volatility, Multi Index 2010 Lifetime is 1.93 times less risky than Jhancock Global. It trades about 0.08 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,125 in Jhancock Global Equity on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Jhancock Global Equity or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Index 2010 Lifetime vs. Jhancock Global Equity
Performance |
| Timeline |
| Multi Index 2010 |
| Jhancock Global Equity |
Multi-index 2010 and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi-index 2010 and Jhancock Global
The main advantage of trading using opposite Multi-index 2010 and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-index 2010 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.| Multi-index 2010 vs. Mondrian Emerging Markets | Multi-index 2010 vs. Black Oak Emerging | Multi-index 2010 vs. Barings Emerging Markets | Multi-index 2010 vs. Transamerica Emerging Markets |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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