Correlation Between Summit Global and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Summit 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 Summit 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 Summit Global Investments and Jhancock Diversified Macro, you can compare the effects of market volatilities on Summit 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 Summit Global with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Jhancock Diversified.
Diversification Opportunities for Summit Global and Jhancock Diversified
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and Jhancock is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Summit 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 Summit Global Investments 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 Summit Global i.e., Summit Global and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Summit Global and Jhancock Diversified
Assuming the 90 days horizon Summit Global Investments is expected to under-perform the Jhancock Diversified. But the mutual fund apears to be less risky and, when comparing its historical volatility, Summit Global Investments is 1.15 times less risky than Jhancock Diversified. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Jhancock Diversified Macro is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 882.00 in Jhancock Diversified Macro on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Jhancock Diversified Macro or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Summit Global Investments vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Summit Global Investments |
| Jhancock Diversified |
Summit Global and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Global and Jhancock Diversified
The main advantage of trading using opposite Summit Global and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit 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.| Summit Global vs. Summit Global Investments | Summit Global vs. Sgi Prudent Growth | Summit Global vs. Summit Global Investments | Summit Global vs. Bogle Small Cap |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |