Correlation Between Nationwide Bond and Jhancock Short
Can any of the company-specific risk be diversified away by investing in both Nationwide Bond and Jhancock Short 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 Nationwide Bond and Jhancock Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Bond Index and Jhancock Short Duration, you can compare the effects of market volatilities on Nationwide Bond and Jhancock Short 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 Nationwide Bond with a short position of Jhancock Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Bond and Jhancock Short.
Diversification Opportunities for Nationwide Bond and Jhancock Short
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nationwide and Jhancock is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Bond Index and Jhancock Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Short Duration and Nationwide Bond 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 Nationwide Bond Index are associated (or correlated) with Jhancock Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Short Duration has no effect on the direction of Nationwide Bond i.e., Nationwide Bond and Jhancock Short go up and down completely randomly.
Pair Corralation between Nationwide Bond and Jhancock Short
Assuming the 90 days horizon Nationwide Bond Index is expected to generate 2.82 times more return on investment than Jhancock Short. However, Nationwide Bond is 2.82 times more volatile than Jhancock Short Duration. It trades about 0.07 of its potential returns per unit of risk. Jhancock Short Duration is currently generating about 0.15 per unit of risk. If you would invest 955.00 in Nationwide Bond Index on August 30, 2024 and sell it today you would earn a total of 5.00 from holding Nationwide Bond Index or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Bond Index vs. Jhancock Short Duration
Performance |
| Timeline |
| Nationwide Bond Index |
| Jhancock Short Duration |
Nationwide Bond and Jhancock Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Bond and Jhancock Short
The main advantage of trading using opposite Nationwide Bond and Jhancock Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Bond position performs unexpectedly, Jhancock Short 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 Short will offset losses from the drop in Jhancock Short's long position.| Nationwide Bond vs. Jhancock Short Duration | Nationwide Bond vs. Old Westbury Short Term | Nationwide Bond vs. Franklin Federal Limited Term | Nationwide Bond vs. Vanguard Short Term Federal |
| Jhancock Short vs. Permanent Portfolio Class | Jhancock Short vs. HUMANA INC | Jhancock Short vs. Aquagold International | Jhancock Short vs. Barloworld Ltd ADR |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |