Correlation Between Jhancock Real and Pimco Extended
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Pimco Extended 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 Pimco Extended 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 Pimco Extended Duration, you can compare the effects of market volatilities on Jhancock Real and Pimco Extended 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 Pimco Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Pimco Extended.
Diversification Opportunities for Jhancock Real and Pimco Extended
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jhancock and Pimco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Pimco Extended Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Extended Duration 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 Pimco Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Extended Duration has no effect on the direction of Jhancock Real i.e., Jhancock Real and Pimco Extended go up and down completely randomly.
Pair Corralation between Jhancock Real and Pimco Extended
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 0.5 times more return on investment than Pimco Extended. However, Jhancock Real Estate is 1.99 times less risky than Pimco Extended. It trades about 0.04 of its potential returns per unit of risk. Pimco Extended Duration is currently generating about 0.0 per unit of risk. If you would invest 1,306 in Jhancock Real Estate on September 15, 2024 and sell it today you would earn a total of 6.00 from holding Jhancock Real Estate or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. Pimco Extended Duration
Performance |
| Timeline |
| Jhancock Real Estate |
| Pimco Extended Duration |
Jhancock Real and Pimco Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and Pimco Extended
The main advantage of trading using opposite Jhancock Real and Pimco Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Pimco Extended 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 Pimco Extended will offset losses from the drop in Pimco Extended's long position.| Jhancock Real vs. Gmo Resources | Jhancock Real vs. Thrivent Natural Resources | Jhancock Real vs. Icon Natural Resources | Jhancock Real vs. Oil Gas Ultrasector |
| Pimco Extended vs. Pender Real Estate | Pimco Extended vs. Neuberger Berman Real | Pimco Extended vs. Jhancock Real Estate | Pimco Extended vs. Dunham 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |