Correlation Between Jhancock Real and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch International, you can compare the effects of market volatilities on Jhancock Real and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Mainstay Epoch.
Diversification Opportunities for Jhancock Real and Mainstay Epoch
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jhancock and Mainstay is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Mainstay Epoch International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Inter 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Inter has no effect on the direction of Jhancock Real i.e., Jhancock Real and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Jhancock Real and Mainstay Epoch
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.15 times more return on investment than Mainstay Epoch. However, Jhancock Real is 1.15 times more volatile than Mainstay Epoch International. It trades about 0.26 of its potential returns per unit of risk. Mainstay Epoch International is currently generating about -0.13 per unit of risk. If you would invest 1,300 in Jhancock Real Estate on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Jhancock Real Estate or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jhancock Real Estate vs. Mainstay Epoch International
Performance |
| Timeline |
| Jhancock Real Estate |
| Mainstay Epoch Inter |
Jhancock Real and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Mainstay Epoch
The main advantage of trading using opposite Jhancock Real and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Jhancock Real vs. Realty Income | Jhancock Real vs. Dynex Capital | Jhancock Real vs. First Industrial Realty | Jhancock Real vs. Healthcare Realty Trust |
| Mainstay Epoch vs. Jpmorgan Trust I | Mainstay Epoch vs. Bbh Trust | Mainstay Epoch vs. Aim Investment Secs | Mainstay Epoch vs. Blackrock Exchange Portfolio |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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