Correlation Between Jhancock Real and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Aim Investment 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 Aim Investment 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 Aim Investment Funds, you can compare the effects of market volatilities on Jhancock Real and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Aim Investment.
Diversification Opportunities for Jhancock Real and Aim Investment
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jhancock and Aim is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Aim Investment Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Funds 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Funds has no effect on the direction of Jhancock Real i.e., Jhancock Real and Aim Investment go up and down completely randomly.
Pair Corralation between Jhancock Real and Aim Investment
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 2.1 times more return on investment than Aim Investment. However, Jhancock Real is 2.1 times more volatile than Aim Investment Funds. It trades about 0.07 of its potential returns per unit of risk. Aim Investment Funds is currently generating about 0.03 per unit of risk. If you would invest 1,322 in Jhancock Real Estate on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Jhancock Real Estate or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Aim Investment Funds
Performance |
| Timeline |
| Jhancock Real Estate |
| Aim Investment Funds |
Jhancock Real and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Aim Investment
The main advantage of trading using opposite Jhancock Real and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Jhancock Real vs. Rational Strategic Allocation | Jhancock Real vs. Gmo Equity Allocation | Jhancock Real vs. Aqr Large Cap | Jhancock Real vs. Morningstar Unconstrained Allocation |
| Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Invesco Municipal Income | Aim Investment vs. Oppenheimer Rising Dividends |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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