Correlation Between Jhancock Short and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Amg Gwk 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 Gwk 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 Gwk Smallmid, you can compare the effects of market volatilities on Jhancock Short and Amg Gwk 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 Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Amg Gwk.
Diversification Opportunities for Jhancock Short and Amg Gwk
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jhancock and Amg is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid 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 Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Smallmid has no effect on the direction of Jhancock Short i.e., Jhancock Short and Amg Gwk go up and down completely randomly.
Pair Corralation between Jhancock Short and Amg Gwk
Assuming the 90 days horizon Jhancock Short Duration is expected to generate 0.04 times more return on investment than Amg Gwk. However, Jhancock Short Duration is 27.67 times less risky than Amg Gwk. It trades about -0.28 of its potential returns per unit of risk. Amg Gwk Smallmid is currently generating about -0.06 per unit of risk. If you would invest 937.00 in Jhancock Short Duration on January 11, 2025 and sell it today you would lose (6.00) from holding Jhancock Short Duration or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Amg Gwk Smallmid
Performance |
| Timeline |
| Jhancock Short Duration |
| Amg Gwk Smallmid |
Jhancock Short and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Amg Gwk
The main advantage of trading using opposite Jhancock Short and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Amg Gwk 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 Gwk will offset losses from the drop in Amg Gwk's long position.| Jhancock Short vs. Victory High Yield | Jhancock Short vs. Gmo High Yield | Jhancock Short vs. Delaware Minnesota High Yield | Jhancock Short vs. Legg Mason Partners |
| Amg Gwk vs. Amg Southernsun Equity | Amg Gwk vs. Amg Southernsun Equity | Amg Gwk vs. Amg Fq Long Short | Amg Gwk vs. Amg Southernsun Small |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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