Correlation Between Jhancock Real and Amana Growth
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Amana Growth 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 Amana Growth 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 Amana Growth Fund, you can compare the effects of market volatilities on Jhancock Real and Amana Growth 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 Amana Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Amana Growth.
Diversification Opportunities for Jhancock Real and Amana Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jhancock and Amana is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Amana Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Growth 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 Amana Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Growth has no effect on the direction of Jhancock Real i.e., Jhancock Real and Amana Growth go up and down completely randomly.
Pair Corralation between Jhancock Real and Amana Growth
Assuming the 90 days horizon Jhancock Real Estate is expected to under-perform the Amana Growth. In addition to that, Jhancock Real is 1.36 times more volatile than Amana Growth Fund. It trades about -0.05 of its total potential returns per unit of risk. Amana Growth Fund is currently generating about 0.04 per unit of volatility. If you would invest 8,164 in Amana Growth Fund on October 25, 2024 and sell it today you would earn a total of 41.00 from holding Amana Growth Fund or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Amana Growth Fund
Performance |
| Timeline |
| Jhancock Real Estate |
| Amana Growth |
Jhancock Real and Amana Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Amana Growth
The main advantage of trading using opposite Jhancock Real and Amana Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Amana Growth 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 Amana Growth will offset losses from the drop in Amana Growth's long position.| Jhancock Real vs. Riverparknext Century Growth | Jhancock Real vs. Needham Aggressive Growth | Jhancock Real vs. Small Pany Growth | Jhancock Real vs. T Rowe Price |
| Amana Growth vs. Global Technology Portfolio | Amana Growth vs. Blackrock Science Technology | Amana Growth vs. Dreyfus Technology Growth | Amana Growth vs. Technology Ultrasector Profund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |