Correlation Between Jhancock Real and Lifex Income
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Lifex Income 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 Lifex Income 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 Lifex Income, you can compare the effects of market volatilities on Jhancock Real and Lifex Income 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 Lifex Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Lifex Income.
Diversification Opportunities for Jhancock Real and Lifex Income
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Lifex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Lifex Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifex Income 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 Lifex Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifex Income has no effect on the direction of Jhancock Real i.e., Jhancock Real and Lifex Income go up and down completely randomly.
Pair Corralation between Jhancock Real and Lifex Income
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.85 times more return on investment than Lifex Income. However, Jhancock Real is 1.85 times more volatile than Lifex Income. It trades about 0.2 of its potential returns per unit of risk. Lifex Income is currently generating about 0.14 per unit of risk. If you would invest 1,112 in Jhancock Real Estate on September 1, 2024 and sell it today you would earn a total of 255.00 from holding Jhancock Real Estate or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Jhancock Real Estate vs. Lifex Income
Performance |
| Timeline |
| Jhancock Real Estate |
| Lifex Income |
Jhancock Real and Lifex Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Lifex Income
The main advantage of trading using opposite Jhancock Real and Lifex Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Lifex Income 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 Lifex Income will offset losses from the drop in Lifex Income'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 |
| Lifex Income vs. Short Precious Metals | Lifex Income vs. Europac Gold Fund | Lifex Income vs. International Investors Gold | Lifex Income vs. Oppenheimer Gold Special |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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