Correlation Between Allianzgi Global and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Allianzgi Global 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 Allianzgi Global and Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Global Small Cap and Jhancock Diversified Macro, you can compare the effects of market volatilities on Allianzgi Global 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 Allianzgi Global with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Global and Jhancock Diversified.
Diversification Opportunities for Allianzgi Global and Jhancock Diversified
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and Jhancock is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Global Small Cap and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Allianzgi Global 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 Allianzgi Global Small Cap 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 Allianzgi Global i.e., Allianzgi Global and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Allianzgi Global and Jhancock Diversified
Assuming the 90 days horizon Allianzgi Global Small Cap is expected to under-perform the Jhancock Diversified. In addition to that, Allianzgi Global is 1.27 times more volatile than Jhancock Diversified Macro. It trades about -0.02 of its total potential returns per unit of risk. Jhancock Diversified Macro is currently generating about 0.06 per unit of volatility. If you would invest 906.00 in Jhancock Diversified Macro on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Jhancock Diversified Macro or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Allianzgi Global Small Cap vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Allianzgi Global Small |
| Jhancock Diversified |
Allianzgi Global and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Global and Jhancock Diversified
The main advantage of trading using opposite Allianzgi Global and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Global 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.| Allianzgi Global vs. Dreyfus Natural Resources | Allianzgi Global vs. Franklin Natural Resources | Allianzgi Global vs. Firsthand Alternative Energy | Allianzgi Global vs. Energy Basic Materials |
| Jhancock Diversified vs. Locorr Market Trend | Jhancock Diversified vs. Pnc Emerging Markets | Jhancock Diversified vs. Western Asset Diversified | Jhancock Diversified vs. Extended Market Index |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| 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 | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |