Correlation Between Jhancock Real and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Jhancock Global 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 Jhancock Global 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 Jhancock Global Equity, you can compare the effects of market volatilities on Jhancock Real and Jhancock Global 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 Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Jhancock Global.
Diversification Opportunities for Jhancock Real and Jhancock Global
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Jhancock is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity 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 Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of Jhancock Real i.e., Jhancock Real and Jhancock Global go up and down completely randomly.
Pair Corralation between Jhancock Real and Jhancock Global
Assuming the 90 days horizon Jhancock Real is expected to generate 1.08 times less return on investment than Jhancock Global. In addition to that, Jhancock Real is 1.66 times more volatile than Jhancock Global Equity. It trades about 0.05 of its total potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.09 per unit of volatility. If you would invest 1,052 in Jhancock Global Equity on September 4, 2024 and sell it today you would earn a total of 336.00 from holding Jhancock Global Equity or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jhancock Real Estate vs. Jhancock Global Equity
Performance |
| Timeline |
| Jhancock Real Estate |
| Jhancock Global Equity |
Jhancock Real and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Jhancock Global
The main advantage of trading using opposite Jhancock Real and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Jhancock Global 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 Jhancock Global will offset losses from the drop in Jhancock Global'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 |
| Jhancock Global vs. Regional Bank Fund | Jhancock Global vs. Regional Bank Fund | Jhancock Global vs. Multimanager Lifestyle Moderate | Jhancock Global vs. Multimanager Lifestyle Balanced |
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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