Correlation Between FrontView REIT, and Jhancock Global

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

By analyzing existing cross correlation between FrontView REIT, and Jhancock Global Equity, you can compare the effects of market volatilities on FrontView REIT, and Jhancock Global 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 FrontView REIT, with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FrontView REIT, and Jhancock Global.

Diversification Opportunities for FrontView REIT, and Jhancock Global

0.45

Correlation Coefficient

FrontView REIT,  Jhancock Global

Very weak diversification

The 3 months correlation between FrontView and Jhancock is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding FrontView REIT, and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity and FrontView REIT, 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 FrontView REIT, are associated (or correlated) with Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of FrontView REIT, i.e., FrontView REIT, and Jhancock Global go up and down completely randomly.

Pair Corralation between FrontView REIT, and Jhancock Global

Considering the 90-day investment horizon FrontView REIT, is expected to under-perform the Jhancock Global. In addition to that, FrontView REIT, is 1.8 times more volatile than Jhancock Global Equity. It trades about -0.04 of its total potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.03 per unit of volatility. If you would invest  1,049  in Jhancock Global Equity on October 7, 2024 and sell it today you would earn a total of  125.00  from holding Jhancock Global Equity or generate 11.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	13.51%
Values	Daily Returns

FrontView REIT,  vs.  Jhancock Global Equity

FrontView REIT,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FrontView REIT, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, FrontView REIT, is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Jhancock Global Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jhancock Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with FrontView REIT, and Jhancock Global

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

The idea behind FrontView REIT, and Jhancock Global Equity 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.