Correlation Between Jhancock Real and Aggressive Allocation
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Aggressive Allocation 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 Aggressive Allocation 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 Aggressive Allocation Fund, you can compare the effects of market volatilities on Jhancock Real and Aggressive Allocation 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 Aggressive Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Aggressive Allocation.
Diversification Opportunities for Jhancock Real and Aggressive Allocation
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Aggressive is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Aggressive Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Allocation 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 Aggressive Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Allocation has no effect on the direction of Jhancock Real i.e., Jhancock Real and Aggressive Allocation go up and down completely randomly.
Pair Corralation between Jhancock Real and Aggressive Allocation
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.45 times more return on investment than Aggressive Allocation. However, Jhancock Real is 1.45 times more volatile than Aggressive Allocation Fund. It trades about 0.08 of its potential returns per unit of risk. Aggressive Allocation Fund is currently generating about 0.1 per unit of risk. If you would invest 1,024 in Jhancock Real Estate on September 12, 2024 and sell it today you would earn a total of 303.00 from holding Jhancock Real Estate or generate 29.59% 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. Aggressive Allocation Fund
Performance |
| Timeline |
| Jhancock Real Estate |
| Aggressive Allocation |
Jhancock Real and Aggressive Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Aggressive Allocation
The main advantage of trading using opposite Jhancock Real and Aggressive Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Aggressive Allocation 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 Aggressive Allocation will offset losses from the drop in Aggressive Allocation's long position.| Jhancock Real vs. Guggenheim Risk Managed | Jhancock Real vs. HUMANA INC | Jhancock Real vs. Barloworld Ltd ADR | Jhancock Real vs. Morningstar Unconstrained Allocation |
| Aggressive Allocation vs. Jhancock Real Estate | Aggressive Allocation vs. Simt Real Estate | Aggressive Allocation vs. Short Real Estate | Aggressive Allocation vs. Goldman Sachs Real |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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