Correlation Between Polen International and Jhancock Short
Can any of the company-specific risk be diversified away by investing in both Polen International 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 Polen International and Jhancock Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polen International Small and Jhancock Short Duration, you can compare the effects of market volatilities on Polen International 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 Polen International with a short position of Jhancock Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polen International and Jhancock Short.
Diversification Opportunities for Polen International and Jhancock Short
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polen and Jhancock is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Polen International Small 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 Polen International 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 Polen International Small 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 Polen International i.e., Polen International and Jhancock Short go up and down completely randomly.
Pair Corralation between Polen International and Jhancock Short
If you would invest 908.00 in Jhancock Short Duration on August 30, 2024 and sell it today you would earn a total of 28.00 from holding Jhancock Short Duration or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Polen International Small vs. Jhancock Short Duration
Performance |
| Timeline |
| Polen International Small |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jhancock Short Duration |
Polen International and Jhancock Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polen International and Jhancock Short
The main advantage of trading using opposite Polen International and Jhancock Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polen International 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.| Polen International vs. Siit Ultra Short | Polen International vs. Sterling Capital Short | Polen International vs. Rbc Short Duration | Polen International vs. Federated Short Intermediate Duration |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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