Correlation Between Jhancock Short and Voya Large
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Voya Large 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 Voya Large 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 Voya Large Cap, you can compare the effects of market volatilities on Jhancock Short and Voya Large 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 Voya Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Voya Large.
Diversification Opportunities for Jhancock Short and Voya Large
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Voya is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Voya Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap 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 Voya Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Jhancock Short i.e., Jhancock Short and Voya Large go up and down completely randomly.
Pair Corralation between Jhancock Short and Voya Large
Assuming the 90 days horizon Jhancock Short is expected to generate 3.97 times less return on investment than Voya Large. But when comparing it to its historical volatility, Jhancock Short Duration is 8.57 times less risky than Voya Large. It trades about 0.18 of its potential returns per unit of risk. Voya Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,404 in Voya Large Cap on September 3, 2024 and sell it today you would earn a total of 226.00 from holding Voya Large Cap or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Voya Large Cap
Performance |
| Timeline |
| Jhancock Short Duration |
| Voya Large Cap |
Jhancock Short and Voya Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Voya Large
The main advantage of trading using opposite Jhancock Short and Voya Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Voya Large 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 Voya Large will offset losses from the drop in Voya Large's long position.| Jhancock Short vs. SPACE | Jhancock Short vs. Bayview Acquisition Corp | Jhancock Short vs. Ampleforth | Jhancock Short vs. ionet |
| Voya Large vs. Franklin Adjustable Government | Voya Large vs. John Hancock Government | Voya Large vs. Us Government Securities | Voya Large vs. Prudential Government Income |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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