Correlation Between J Hancock and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both J Hancock 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 J Hancock and Jhancock 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 Jhancock Global Equity, you can compare the effects of market volatilities on J Hancock 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 J Hancock with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Jhancock Global.
Diversification Opportunities for J Hancock and Jhancock Global
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JRODX and Jhancock is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii 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 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 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 J Hancock i.e., J Hancock and Jhancock Global go up and down completely randomly.
Pair Corralation between J Hancock and Jhancock Global
Assuming the 90 days horizon J Hancock Ii is expected to generate 1.11 times more return on investment than Jhancock Global. However, J Hancock is 1.11 times more volatile than Jhancock Global Equity. It trades about 0.11 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.06 per unit of risk. If you would invest 1,511 in J Hancock Ii on September 1, 2024 and sell it today you would earn a total of 164.00 from holding J Hancock Ii or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Hancock Ii vs. Jhancock Global Equity
Performance |
| Timeline |
| J Hancock Ii |
| Jhancock Global Equity |
J Hancock and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Jhancock Global
The main advantage of trading using opposite J Hancock and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock 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.| J Hancock vs. Dreyfusstandish Global Fixed | J Hancock vs. Calamos Dynamic Convertible | J Hancock vs. California Bond Fund | J Hancock vs. T Rowe Price |
| Jhancock Global vs. Ab Bond Inflation | Jhancock Global vs. Guidepath Managed Futures | Jhancock Global vs. Nationwide Inflation Protected Securities | Jhancock Global vs. Lord Abbett Inflation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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