Correlation Between Jhancock Short and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Barings Emerging 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 Barings Emerging 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 Barings Emerging Markets, you can compare the effects of market volatilities on Jhancock Short and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Barings Emerging.
Diversification Opportunities for Jhancock Short and Barings Emerging
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Barings is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Jhancock Short i.e., Jhancock Short and Barings Emerging go up and down completely randomly.
Pair Corralation between Jhancock Short and Barings Emerging
Assuming the 90 days horizon Jhancock Short Duration is expected to generate 0.41 times more return on investment than Barings Emerging. However, Jhancock Short Duration is 2.45 times less risky than Barings Emerging. It trades about 0.11 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 932.00 in Jhancock Short Duration on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Jhancock Short Duration or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Barings Emerging Markets
Performance |
| Timeline |
| Jhancock Short Duration |
| Barings Emerging Markets |
Jhancock Short and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Barings Emerging
The main advantage of trading using opposite Jhancock Short and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Jhancock Short vs. Regional Bank Fund | Jhancock Short vs. Regional Bank Fund | Jhancock Short vs. Multimanager Lifestyle Moderate | Jhancock Short vs. Multimanager Lifestyle Balanced |
| Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Emerging Markets | Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Global Floating |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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