Correlation Between Jhancock Real and Thrivent Municipal
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Thrivent Municipal 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 Real and Thrivent Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Real Estate and Thrivent Municipal Bond, you can compare the effects of market volatilities on Jhancock Real and Thrivent Municipal 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 Real with a short position of Thrivent Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Thrivent Municipal.
Diversification Opportunities for Jhancock Real and Thrivent Municipal
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jhancock and Thrivent is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Thrivent Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Municipal Bond and Jhancock Real 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 Real Estate are associated (or correlated) with Thrivent Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Municipal Bond has no effect on the direction of Jhancock Real i.e., Jhancock Real and Thrivent Municipal go up and down completely randomly.
Pair Corralation between Jhancock Real and Thrivent Municipal
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 3.67 times more return on investment than Thrivent Municipal. However, Jhancock Real is 3.67 times more volatile than Thrivent Municipal Bond. It trades about 0.08 of its potential returns per unit of risk. Thrivent Municipal Bond is currently generating about 0.1 per unit of risk. If you would invest 1,024 in Jhancock Real Estate on September 12, 2024 and sell it today you would earn a total of 303.00 from holding Jhancock Real Estate or generate 29.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Jhancock Real Estate vs. Thrivent Municipal Bond
Performance |
| Timeline |
| Jhancock Real Estate |
| Thrivent Municipal Bond |
Jhancock Real and Thrivent Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Thrivent Municipal
The main advantage of trading using opposite Jhancock Real and Thrivent Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Thrivent Municipal 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 Thrivent Municipal will offset losses from the drop in Thrivent Municipal's long position.| Jhancock Real vs. Guggenheim Risk Managed | Jhancock Real vs. HUMANA INC | Jhancock Real vs. Barloworld Ltd ADR | Jhancock Real vs. Morningstar Unconstrained Allocation |
| Thrivent Municipal vs. Virtus Real Estate | Thrivent Municipal vs. Fidelity Real Estate | Thrivent Municipal vs. Jhancock Real Estate | Thrivent Municipal vs. Sa Real Estate |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |