Correlation Between Jhancock Short and Aam/himco Short
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Aam/himco Short 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 Aam/himco Short 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 Aamhimco Short Duration, you can compare the effects of market volatilities on Jhancock Short and Aam/himco Short 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 Aam/himco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Aam/himco Short.
Diversification Opportunities for Jhancock Short and Aam/himco Short
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jhancock and Aam/himco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Aamhimco Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aamhimco Short Duration 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 Aam/himco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aamhimco Short Duration has no effect on the direction of Jhancock Short i.e., Jhancock Short and Aam/himco Short go up and down completely randomly.
Pair Corralation between Jhancock Short and Aam/himco Short
Assuming the 90 days horizon Jhancock Short is expected to generate 3.7 times less return on investment than Aam/himco Short. But when comparing it to its historical volatility, Jhancock Short Duration is 1.14 times less risky than Aam/himco Short. It trades about 0.05 of its potential returns per unit of risk. Aamhimco Short Duration is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Aamhimco Short Duration on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Aamhimco Short Duration or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Aamhimco Short Duration
Performance |
| Timeline |
| Jhancock Short Duration |
| Aamhimco Short Duration |
Jhancock Short and Aam/himco Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Aam/himco Short
The main advantage of trading using opposite Jhancock Short and Aam/himco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Aam/himco Short 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 Aam/himco Short will offset losses from the drop in Aam/himco Short's long position.| Jhancock Short vs. Vanguard Energy Index | Jhancock Short vs. Hennessy Bp Energy | Jhancock Short vs. Pimco Energy Tactical | Jhancock Short vs. Jennison Natural Resources |
| Aam/himco Short vs. Ultrasmall Cap Profund Ultrasmall Cap | Aam/himco Short vs. Mutual Of America | Aam/himco Short vs. Fpa Queens Road | Aam/himco Short vs. Applied Finance Explorer |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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