Correlation Between J Hancock and Lifestyle
Can any of the company-specific risk be diversified away by investing in both J Hancock and 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 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 Lifestyle Ii Aggressive, you can compare the effects of market volatilities on J Hancock and 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 Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Lifestyle.
Diversification Opportunities for J Hancock and Lifestyle
Almost no diversification
The 3 months correlation between JROUX and Lifestyle is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Lifestyle Ii Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestyle Ii Aggressive 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 Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestyle Ii Aggressive has no effect on the direction of J Hancock i.e., J Hancock and Lifestyle go up and down completely randomly.
Pair Corralation between J Hancock and Lifestyle
Assuming the 90 days horizon J Hancock is expected to generate 1.07 times less return on investment than Lifestyle. In addition to that, J Hancock is 1.0 times more volatile than Lifestyle Ii Aggressive. It trades about 0.14 of its total potential returns per unit of risk. Lifestyle Ii Aggressive is currently generating about 0.15 per unit of volatility. If you would invest 1,377 in Lifestyle Ii Aggressive on August 30, 2024 and sell it today you would earn a total of 31.00 from holding Lifestyle Ii Aggressive or generate 2.25% 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. Lifestyle Ii Aggressive
Performance |
| Timeline |
| J Hancock Ii |
| Lifestyle Ii Aggressive |
J Hancock and Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Lifestyle
The main advantage of trading using opposite J Hancock and Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, 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 Lifestyle will offset losses from the drop in Lifestyle's long position.| J Hancock vs. Metropolitan West High | J Hancock vs. Pace High Yield | J Hancock vs. Multimanager Lifestyle Aggressive | J Hancock vs. Ab High Income |
| Lifestyle vs. Kinetics Market Opportunities | Lifestyle vs. Performance Trust Strategic | Lifestyle vs. Artisan Emerging Markets | Lifestyle vs. California Bond 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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