Correlation Between Thornburg Strategic and Jhancock Short
Can any of the company-specific risk be diversified away by investing in both Thornburg Strategic 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 Thornburg Strategic and Jhancock Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Strategic Municipal and Jhancock Short Duration, you can compare the effects of market volatilities on Thornburg Strategic 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 Thornburg Strategic with a short position of Jhancock Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Strategic and Jhancock Short.
Diversification Opportunities for Thornburg Strategic and Jhancock Short
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THORNBURG and Jhancock is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Strategic Municipal 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 Thornburg Strategic 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 Thornburg Strategic Municipal 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 Thornburg Strategic i.e., Thornburg Strategic and Jhancock Short go up and down completely randomly.
Pair Corralation between Thornburg Strategic and Jhancock Short
Assuming the 90 days horizon Thornburg Strategic is expected to generate 2.47 times less return on investment than Jhancock Short. In addition to that, Thornburg Strategic is 1.4 times more volatile than Jhancock Short Duration. It trades about 0.06 of its total potential returns per unit of risk. Jhancock Short Duration is currently generating about 0.22 per unit of volatility. If you would invest 929.00 in Jhancock Short Duration on October 24, 2024 and sell it today you would earn a total of 5.00 from holding Jhancock Short Duration or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Strategic Municipal vs. Jhancock Short Duration
Performance |
| Timeline |
| Thornburg Strategic |
| Jhancock Short Duration |
Thornburg Strategic and Jhancock Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Strategic and Jhancock Short
The main advantage of trading using opposite Thornburg Strategic and Jhancock Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Strategic 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.| Thornburg Strategic vs. Jhancock Short Duration | Thornburg Strategic vs. Prudential Short Duration | Thornburg Strategic vs. Rbc Short Duration | Thornburg Strategic vs. Baird Short Term Bond |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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