Correlation Between Jhancock Real and American Beacon
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and American Beacon 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 American Beacon 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 American Beacon Ark, you can compare the effects of market volatilities on Jhancock Real and American Beacon 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 American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and American Beacon.
Diversification Opportunities for Jhancock Real and American Beacon
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and American is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and American Beacon Ark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Ark 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 American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Ark has no effect on the direction of Jhancock Real i.e., Jhancock Real and American Beacon go up and down completely randomly.
Pair Corralation between Jhancock Real and American Beacon
Assuming the 90 days horizon Jhancock Real Estate is expected to under-perform the American Beacon. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Real Estate is 2.95 times less risky than American Beacon. The mutual fund trades about 0.0 of its potential returns per unit of risk. The American Beacon Ark is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,455 in American Beacon Ark on September 13, 2024 and sell it today you would earn a total of 126.00 from holding American Beacon Ark or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. American Beacon Ark
Performance |
| Timeline |
| Jhancock Real Estate |
| American Beacon Ark |
Jhancock Real and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and American Beacon
The main advantage of trading using opposite Jhancock Real and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Jhancock Real vs. Iaadx | Jhancock Real vs. Scharf Global Opportunity | Jhancock Real vs. Rbb Fund | Jhancock Real vs. Falcon Focus Scv |
| American Beacon vs. American Beacon Ark | American Beacon vs. Amer Beacon Ark | American Beacon vs. Amer Beacon Ark | American Beacon vs. Amer Beacon Ark |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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