Correlation Between Jhancock Real and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Catalyst/millburn 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 Catalyst/millburn 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 Catalystmillburn Dynamic Commodity, you can compare the effects of market volatilities on Jhancock Real and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Catalyst/millburn.
Diversification Opportunities for Jhancock Real and Catalyst/millburn
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jhancock and Catalyst/millburn is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Catalystmillburn Dynamic Commo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Dyn 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Dyn has no effect on the direction of Jhancock Real i.e., Jhancock Real and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Jhancock Real and Catalyst/millburn
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 0.98 times more return on investment than Catalyst/millburn. However, Jhancock Real Estate is 1.02 times less risky than Catalyst/millburn. It trades about 0.32 of its potential returns per unit of risk. Catalystmillburn Dynamic Commodity is currently generating about 0.01 per unit of risk. If you would invest 1,295 in Jhancock Real Estate on September 4, 2024 and sell it today you would earn a total of 66.00 from holding Jhancock Real Estate or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jhancock Real Estate vs. Catalystmillburn Dynamic Commo
Performance |
| Timeline |
| Jhancock Real Estate |
| Catalystmillburn Dyn |
Jhancock Real and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Catalyst/millburn
The main advantage of trading using opposite Jhancock Real and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn'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 |
| Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalystsmh High Income | Catalyst/millburn vs. Catalyst Mlp Infrastructure |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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