Correlation Between Jhancock Short and Voya Index
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Voya Index 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 Index 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 Index Solution, you can compare the effects of market volatilities on Jhancock Short and Voya Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Voya Index.
Diversification Opportunities for Jhancock Short and Voya Index
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jhancock and Voya is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Jhancock Short i.e., Jhancock Short and Voya Index go up and down completely randomly.
Pair Corralation between Jhancock Short and Voya Index
Assuming the 90 days horizon Jhancock Short is expected to generate 11.18 times less return on investment than Voya Index. But when comparing it to its historical volatility, Jhancock Short Duration is 4.89 times less risky than Voya Index. It trades about 0.06 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,743 in Voya Index Solution on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Voya Index Solution or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Voya Index Solution
Performance |
| Timeline |
| Jhancock Short Duration |
| Voya Index Solution |
Jhancock Short and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Voya Index
The main advantage of trading using opposite Jhancock Short and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Voya Index 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 Index will offset losses from the drop in Voya Index's long position.| Jhancock Short vs. Goehring Rozencwajg Resources | Jhancock Short vs. Oil Gas Ultrasector | Jhancock Short vs. Franklin Natural Resources | Jhancock Short vs. Energy Services Fund |
| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
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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