Correlation Between Valic Company and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Valic Company 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 Valic Company and Jhancock Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Jhancock Diversified Macro, you can compare the effects of market volatilities on Valic Company 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 Valic Company with a short position of Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Jhancock Diversified.
Diversification Opportunities for Valic Company and Jhancock Diversified
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Valic and Jhancock is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified and Valic Company 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 Valic Company I 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 Valic Company i.e., Valic Company and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Valic Company and Jhancock Diversified
Assuming the 90 days horizon Valic Company I is expected to generate 1.06 times more return on investment than Jhancock Diversified. However, Valic Company is 1.06 times more volatile than Jhancock Diversified Macro. It trades about 0.34 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about 0.15 per unit of risk. If you would invest 1,111 in Valic Company I on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Valic Company I or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Valic Company I |
| Jhancock Diversified |
Valic Company and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Jhancock Diversified
The main advantage of trading using opposite Valic Company and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company 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.| Valic Company vs. Jhancock Diversified Macro | Valic Company vs. Oppenheimer International Diversified | Valic Company vs. Adams Diversified Equity | Valic Company vs. Aqr Diversified Arbitrage |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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