Correlation Between Jhancock Real and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Mainstay Growth 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 Growth 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 Growth Etf, you can compare the effects of market volatilities on Jhancock Real and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Mainstay Growth.
Diversification Opportunities for Jhancock Real and Mainstay Growth
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Mainstay is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Jhancock Real i.e., Jhancock Real and Mainstay Growth go up and down completely randomly.
Pair Corralation between Jhancock Real and Mainstay Growth
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.42 times more return on investment than Mainstay Growth. However, Jhancock Real is 1.42 times more volatile than Mainstay Growth Etf. It trades about 0.16 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.21 per unit of risk. If you would invest 1,325 in Jhancock Real Estate on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Jhancock Real Estate or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Mainstay Growth Etf
Performance |
| Timeline |
| Jhancock Real Estate |
| Mainstay Growth Etf |
Jhancock Real and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Mainstay Growth
The main advantage of trading using opposite Jhancock Real and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Jhancock Real vs. Prudential Government Money | Jhancock Real vs. Blackrock Exchange Portfolio | Jhancock Real vs. Chestnut Street Exchange | Jhancock Real vs. Cref Money Market |
| Mainstay Growth vs. Simt Real Estate | Mainstay Growth vs. Great West Real Estate | Mainstay Growth vs. Jhancock Real Estate | Mainstay Growth vs. Virtus Real Estate |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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