Correlation Between Federated Kaufmann and Jhancock Disciplined
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Jhancock Disciplined 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 Federated Kaufmann and Jhancock Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Large and Jhancock Disciplined Value, you can compare the effects of market volatilities on Federated Kaufmann and Jhancock Disciplined 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 Federated Kaufmann with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Jhancock Disciplined.
Diversification Opportunities for Federated Kaufmann and Jhancock Disciplined
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Jhancock is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Jhancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Federated Kaufmann 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 Federated Kaufmann Large are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Jhancock Disciplined go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Jhancock Disciplined
Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 0.83 times more return on investment than Jhancock Disciplined. However, Federated Kaufmann Large is 1.2 times less risky than Jhancock Disciplined. It trades about 0.35 of its potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.28 per unit of risk. If you would invest 1,877 in Federated Kaufmann Large on September 3, 2024 and sell it today you would earn a total of 122.00 from holding Federated Kaufmann Large or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Jhancock Disciplined Value
Performance |
| Timeline |
| Federated Kaufmann Large |
| Jhancock Disciplined |
Federated Kaufmann and Jhancock Disciplined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Jhancock Disciplined
The main advantage of trading using opposite Federated Kaufmann and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Jhancock Disciplined 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 Disciplined will offset losses from the drop in Jhancock Disciplined's long position.| Federated Kaufmann vs. American Funds The | Federated Kaufmann vs. American Funds The | Federated Kaufmann vs. Growth Fund Of | Federated Kaufmann vs. Growth Fund Of |
| Jhancock Disciplined vs. T Rowe Price | Jhancock Disciplined vs. T Rowe Price | Jhancock Disciplined vs. T Rowe Price | Jhancock Disciplined vs. T Rowe Price |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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