Correlation Between Lsv Small and Jhancock Multi-index
Can any of the company-specific risk be diversified away by investing in both Lsv Small and Jhancock Multi-index 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 Lsv Small and Jhancock Multi-index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lsv Small Cap and Jhancock Multi Index 2065, you can compare the effects of market volatilities on Lsv Small and Jhancock Multi-index 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 Lsv Small with a short position of Jhancock Multi-index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lsv Small and Jhancock Multi-index.
Diversification Opportunities for Lsv Small and Jhancock Multi-index
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lsv and Jhancock is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lsv Small Cap and Jhancock Multi Index 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Multi Index and Lsv Small 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 Lsv Small Cap are associated (or correlated) with Jhancock Multi-index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Multi Index has no effect on the direction of Lsv Small i.e., Lsv Small and Jhancock Multi-index go up and down completely randomly.
Pair Corralation between Lsv Small and Jhancock Multi-index
Assuming the 90 days horizon Lsv Small is expected to generate 1.09 times less return on investment than Jhancock Multi-index. In addition to that, Lsv Small is 1.27 times more volatile than Jhancock Multi Index 2065. It trades about 0.15 of its total potential returns per unit of risk. Jhancock Multi Index 2065 is currently generating about 0.21 per unit of volatility. If you would invest 1,416 in Jhancock Multi Index 2065 on November 9, 2024 and sell it today you would earn a total of 44.00 from holding Jhancock Multi Index 2065 or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lsv Small Cap vs. Jhancock Multi Index 2065
Performance |
| Timeline |
| Lsv Small Cap |
| Jhancock Multi Index |
Lsv Small and Jhancock Multi-index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lsv Small and Jhancock Multi-index
The main advantage of trading using opposite Lsv Small and Jhancock Multi-index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lsv Small position performs unexpectedly, Jhancock Multi-index 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 Multi-index will offset losses from the drop in Jhancock Multi-index's long position.| Lsv Small vs. Amg Timessquare Mid | Lsv Small vs. Lsv Value Equity | Lsv Small vs. Baron Discovery Fund | Lsv Small vs. Victory Sycamore Established |
| Jhancock Multi-index vs. Jhancock Global Equity | Jhancock Multi-index vs. Jhancock Global Equity | Jhancock Multi-index vs. Jhancock Global Equity | Jhancock Multi-index vs. Jhancock Blue Chip |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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