Correlation Between Ivy Managed and Jhancock Global

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

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

Diversification Opportunities for Ivy Managed and Jhancock Global

0.0

Correlation Coefficient

Ivy Managed  Jhancock Global

Pay attention - limited upside

The 3 months correlation between Ivy and Jhancock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ivy Managed International 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 Ivy 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 Ivy Managed International 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 Ivy Managed i.e., Ivy Managed and Jhancock Global go up and down completely randomly.

Pair Corralation between Ivy Managed and Jhancock Global

If you would invest  1,352  in Jhancock Global Equity on September 16, 2024 and sell it today you would lose (1.00) from holding Jhancock Global Equity or give up 0.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Ivy Managed International  vs.  Jhancock Global Equity

Ivy Managed International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Ivy Managed and Jhancock Global

The main advantage of trading using opposite Ivy Managed and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ivy Managed 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 Ivy Managed International 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.