Correlation Between Kopernik Global and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Kopernik Global and Jhancock Diversified 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 Kopernik Global and Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kopernik Global All Cap and Jhancock Diversified Macro, you can compare the effects of market volatilities on Kopernik Global and Jhancock Diversified 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 Kopernik Global with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopernik Global and Jhancock Diversified.
Diversification Opportunities for Kopernik Global and Jhancock Diversified
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kopernik and Jhancock is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kopernik Global All Cap and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Kopernik Global 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 Kopernik Global All Cap are associated (or correlated) with Jhancock Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Diversified has no effect on the direction of Kopernik Global i.e., Kopernik Global and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Kopernik Global and Jhancock Diversified
Assuming the 90 days horizon Kopernik Global All Cap is expected to generate 1.22 times more return on investment than Jhancock Diversified. However, Kopernik Global is 1.22 times more volatile than Jhancock Diversified Macro. It trades about 0.02 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about -0.02 per unit of risk. If you would invest 1,184 in Kopernik Global All Cap on August 26, 2024 and sell it today you would earn a total of 44.00 from holding Kopernik Global All Cap or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kopernik Global All Cap vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Kopernik Global All |
| Jhancock Diversified |
Kopernik Global and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kopernik Global and Jhancock Diversified
The main advantage of trading using opposite Kopernik Global and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kopernik Global position performs unexpectedly, Jhancock Diversified 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 Diversified will offset losses from the drop in Jhancock Diversified's long position.| Kopernik Global vs. Jhancock Diversified Macro | Kopernik Global vs. American Funds Conservative | Kopernik Global vs. Tiaa Cref Lifestyle Conservative | Kopernik Global vs. Calvert Conservative Allocation |
| Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Multimanager Lifestyle Moderate | Jhancock Diversified 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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