Correlation Between Jhancock Real and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Franklin Mutual 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 Franklin Mutual 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 Franklin Mutual Global, you can compare the effects of market volatilities on Jhancock Real and Franklin Mutual 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 Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Franklin Mutual.
Diversification Opportunities for Jhancock Real and Franklin Mutual
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jhancock and Franklin is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global 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 Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Jhancock Real i.e., Jhancock Real and Franklin Mutual go up and down completely randomly.
Pair Corralation between Jhancock Real and Franklin Mutual
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.3 times more return on investment than Franklin Mutual. However, Jhancock Real is 1.3 times more volatile than Franklin Mutual Global. It trades about 0.12 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.04 per unit of risk. If you would invest 1,280 in Jhancock Real Estate on September 2, 2024 and sell it today you would earn a total of 81.00 from holding Jhancock Real Estate or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Franklin Mutual Global
Performance |
| Timeline |
| Jhancock Real Estate |
| Franklin Mutual Global |
Jhancock Real and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Franklin Mutual
The main advantage of trading using opposite Jhancock Real and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Franklin Mutual 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 Franklin Mutual will offset losses from the drop in Franklin Mutual'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 |
| Franklin Mutual vs. Small Pany Growth | Franklin Mutual vs. Eip Growth And | Franklin Mutual vs. Champlain Mid Cap | Franklin Mutual vs. Qs Growth Fund |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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