Correlation Between Jhancock Real and Cullen High
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Cullen High 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 Cullen High 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 Cullen High Dividend, you can compare the effects of market volatilities on Jhancock Real and Cullen High 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 Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Cullen High.
Diversification Opportunities for Jhancock Real and Cullen High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Cullen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Cullen High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen High Dividend 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 Cullen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen High Dividend has no effect on the direction of Jhancock Real i.e., Jhancock Real and Cullen High go up and down completely randomly.
Pair Corralation between Jhancock Real and Cullen High
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.62 times more return on investment than Cullen High. However, Jhancock Real is 1.62 times more volatile than Cullen High Dividend. It trades about 0.07 of its potential returns per unit of risk. Cullen High Dividend is currently generating about 0.08 per unit of risk. If you would invest 1,049 in Jhancock Real Estate on September 2, 2024 and sell it today you would earn a total of 312.00 from holding Jhancock Real Estate or generate 29.74% 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. Cullen High Dividend
Performance |
| Timeline |
| Jhancock Real Estate |
| Cullen High Dividend |
Jhancock Real and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Cullen High
The main advantage of trading using opposite Jhancock Real and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Cullen High 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 Cullen High will offset losses from the drop in Cullen High's long position.| Jhancock Real vs. Great West Real Estate | Jhancock Real vs. Columbia Real Estate | Jhancock Real vs. Franklin Real Estate | Jhancock Real vs. Prudential Real Estate |
| Cullen High vs. Blackrock Financial Institutions | Cullen High vs. Angel Oak Financial | Cullen High vs. Mesirow Financial Small | Cullen High vs. John Hancock Financial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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