Correlation Between Cref Money and Jhancock Real
Can any of the company-specific risk be diversified away by investing in both Cref Money and Jhancock Real 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 Cref Money and Jhancock Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Jhancock Real Estate, you can compare the effects of market volatilities on Cref Money and Jhancock Real 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 Cref Money with a short position of Jhancock Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Jhancock Real.
Diversification Opportunities for Cref Money and Jhancock Real
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cref and Jhancock is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Jhancock Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Real Estate and Cref Money 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 Cref Money Market are associated (or correlated) with Jhancock Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Real Estate has no effect on the direction of Cref Money i.e., Cref Money and Jhancock Real go up and down completely randomly.
Pair Corralation between Cref Money and Jhancock Real
Assuming the 90 days trading horizon Cref Money is expected to generate 5.51 times less return on investment than Jhancock Real. But when comparing it to its historical volatility, Cref Money Market is 44.19 times less risky than Jhancock Real. It trades about 0.99 of its potential returns per unit of risk. Jhancock Real Estate is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,280 in Jhancock Real Estate on September 2, 2024 and sell it today you would earn a total of 81.00 from holding Jhancock Real Estate or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Jhancock Real Estate
Performance |
| Timeline |
| Cref Money Market |
| Jhancock Real Estate |
Cref Money and Jhancock Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Jhancock Real
The main advantage of trading using opposite Cref Money and Jhancock Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Jhancock Real 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 Real will offset losses from the drop in Jhancock Real's long position.| Cref Money vs. Tfa Alphagen Growth | Cref Money vs. L Abbett Growth | Cref Money vs. Nationwide Growth Fund | Cref Money vs. Growth Opportunities Fund |
| Jhancock Real vs. Great West Real Estate | Jhancock Real vs. Columbia Real Estate | Jhancock Real vs. Franklin Real Estate | Jhancock Real vs. Prudential Real Estate |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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