Correlation Between Jhancock Real and Ancora Microcap
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Ancora Microcap 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 Ancora Microcap 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 Ancora Microcap Fund, you can compare the effects of market volatilities on Jhancock Real and Ancora Microcap 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 Ancora Microcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Ancora Microcap.
Diversification Opportunities for Jhancock Real and Ancora Microcap
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Ancora is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Ancora Microcap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora Microcap 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 Ancora Microcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora Microcap has no effect on the direction of Jhancock Real i.e., Jhancock Real and Ancora Microcap go up and down completely randomly.
Pair Corralation between Jhancock Real and Ancora Microcap
Assuming the 90 days horizon Jhancock Real is expected to generate 1.06 times less return on investment than Ancora Microcap. In addition to that, Jhancock Real is 1.07 times more volatile than Ancora Microcap Fund. It trades about 0.05 of its total potential returns per unit of risk. Ancora Microcap Fund is currently generating about 0.06 per unit of volatility. If you would invest 1,367 in Ancora Microcap Fund on September 4, 2024 and sell it today you would earn a total of 422.00 from holding Ancora Microcap Fund or generate 30.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jhancock Real Estate vs. Ancora Microcap Fund
Performance |
| Timeline |
| Jhancock Real Estate |
| Ancora Microcap |
Jhancock Real and Ancora Microcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Ancora Microcap
The main advantage of trading using opposite Jhancock Real and Ancora Microcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Ancora Microcap 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 Ancora Microcap will offset losses from the drop in Ancora Microcap's long position.| Jhancock Real vs. Calamos Market Neutral | Jhancock Real vs. Locorr Market Trend | Jhancock Real vs. Transamerica Emerging Markets | Jhancock Real vs. Ep Emerging Markets |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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