Correlation Between Jhancock Short and Amg River
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Amg River 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 Jhancock Short and Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Short Duration and Amg River Road, you can compare the effects of market volatilities on Jhancock Short and Amg River 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 Jhancock Short with a short position of Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Amg River.
Diversification Opportunities for Jhancock Short and Amg River
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jhancock and Amg is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road and Jhancock Short 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 Jhancock Short Duration are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Jhancock Short i.e., Jhancock Short and Amg River go up and down completely randomly.
Pair Corralation between Jhancock Short and Amg River
Assuming the 90 days horizon Jhancock Short Duration is expected to generate 0.23 times more return on investment than Amg River. However, Jhancock Short Duration is 4.41 times less risky than Amg River. It trades about 0.2 of its potential returns per unit of risk. Amg River Road is currently generating about 0.04 per unit of risk. If you would invest 930.00 in Jhancock Short Duration on November 18, 2024 and sell it today you would earn a total of 5.00 from holding Jhancock Short Duration or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Amg River Road
Performance |
| Timeline |
| Jhancock Short Duration |
| Amg River Road |
Jhancock Short and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Amg River
The main advantage of trading using opposite Jhancock Short and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Amg River 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 Amg River will offset losses from the drop in Amg River's long position.| Jhancock Short vs. Franklin Emerging Market | Jhancock Short vs. Vanguard Emerging Markets | Jhancock Short vs. Pnc Emerging Markets | Jhancock Short vs. Rbc Emerging Markets |
| Amg River vs. Dodge Cox Emerging | Amg River vs. Transamerica Emerging Markets | Amg River vs. Franklin Emerging Market | Amg River vs. Goldman Sachs Emerging |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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