Correlation Between Jhancock Real and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Mainstay Balanced 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 Balanced 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 Balanced Fund, you can compare the effects of market volatilities on Jhancock Real and Mainstay Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Mainstay Balanced.
Diversification Opportunities for Jhancock Real and Mainstay Balanced
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Mainstay is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Jhancock Real i.e., Jhancock Real and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Jhancock Real and Mainstay Balanced
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 0.77 times more return on investment than Mainstay Balanced. However, Jhancock Real Estate is 1.3 times less risky than Mainstay Balanced. It trades about 0.0 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about -0.22 per unit of risk. If you would invest 1,313 in Jhancock Real Estate on September 13, 2024 and sell it today you would lose (1.00) from holding Jhancock Real Estate or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Jhancock Real Estate |
| Mainstay Balanced |
Jhancock Real and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Mainstay Balanced
The main advantage of trading using opposite Jhancock Real and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Jhancock Real vs. Iaadx | Jhancock Real vs. Scharf Global Opportunity | Jhancock Real vs. Rbb Fund | Jhancock Real vs. Falcon Focus Scv |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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