Correlation Between Total Return and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Total Return 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 Total Return and Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Return Fund and Jhancock Diversified Macro, you can compare the effects of market volatilities on Total Return 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 Total Return with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Return and Jhancock Diversified.
Diversification Opportunities for Total Return and Jhancock Diversified
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Total and Jhancock is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Total Return Fund and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Total Return 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 Total Return Fund 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 Total Return i.e., Total Return and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Total Return and Jhancock Diversified
Assuming the 90 days horizon Total Return Fund is expected to generate 0.74 times more return on investment than Jhancock Diversified. However, Total Return Fund is 1.35 times less risky than Jhancock Diversified. It trades about 0.04 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about 0.0 per unit of risk. If you would invest 714.00 in Total Return Fund on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Total Return Fund or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Total Return Fund vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Total Return |
| Jhancock Diversified |
Total Return and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Return and Jhancock Diversified
The main advantage of trading using opposite Total Return and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Return 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.| Total Return vs. Jhancock Diversified Macro | Total Return vs. Aqr Diversified Arbitrage | Total Return vs. Huber Capital Diversified | Total Return vs. Prudential Core Conservative |
| Jhancock Diversified vs. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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