Correlation Between Asg Managed and Jhancock Multi-index

Can any of the company-specific risk be diversified away by investing in both Asg Managed and Jhancock Multi-index 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 Asg Managed and Jhancock Multi-index into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asg Managed Futures and Jhancock Multi Index 2065, you can compare the effects of market volatilities on Asg Managed and Jhancock Multi-index 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 Asg Managed with a short position of Jhancock Multi-index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Jhancock Multi-index.

Diversification Opportunities for Asg Managed and Jhancock Multi-index

0.54

Correlation Coefficient

Asg Managed  Jhancock Multi-index

Very weak diversification

The 3 months correlation between Asg and Jhancock is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Jhancock Multi Index 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Multi Index and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Jhancock Multi-index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Multi Index has no effect on the direction of Asg Managed i.e., Asg Managed and Jhancock Multi-index go up and down completely randomly.

Pair Corralation between Asg Managed and Jhancock Multi-index

Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the Jhancock Multi-index. But the mutual fund apears to be less risky and, when comparing its historical volatility, Asg Managed Futures is 1.05 times less risky than Jhancock Multi-index. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Jhancock Multi Index 2065 is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,412  in Jhancock Multi Index 2065 on December 29, 2024 and sell it today you would lose (24.00) from holding Jhancock Multi Index 2065 or give up 1.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Asg Managed Futures  vs.  Jhancock Multi Index 2065

Asg Managed Futures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Asg Managed Futures has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Asg Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jhancock Multi Index

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jhancock Multi Index 2065 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, Jhancock Multi-index is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Asg Managed and Jhancock Multi-index

The main advantage of trading using opposite Asg Managed and Jhancock Multi-index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Jhancock Multi-index 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 Multi-index will offset losses from the drop in Jhancock Multi-index's long position.

The idea behind Asg Managed Futures and Jhancock Multi Index 2065 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.