Correlation Between Jhancock Disciplined and Frost Growth

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

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

Diversification Opportunities for Jhancock Disciplined and Frost Growth

-0.44

Correlation Coefficient

Jhancock Disciplined  Frost Growth

Very good diversification

The 3 months correlation between Jhancock and Frost is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value and Frost Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Growth Equity and Jhancock Disciplined 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 Jhancock Disciplined Value are associated (or correlated) with Frost Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Growth Equity has no effect on the direction of Jhancock Disciplined i.e., Jhancock Disciplined and Frost Growth go up and down completely randomly.

Pair Corralation between Jhancock Disciplined and Frost Growth

Assuming the 90 days horizon Jhancock Disciplined Value is expected to generate 0.49 times more return on investment than Frost Growth. However, Jhancock Disciplined Value is 2.04 times less risky than Frost Growth. It trades about 0.1 of its potential returns per unit of risk. Frost Growth Equity is currently generating about 0.03 per unit of risk. If you would invest  2,224  in Jhancock Disciplined Value on September 19, 2024 and sell it today you would earn a total of  418.00  from holding Jhancock Disciplined Value or generate 18.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jhancock Disciplined Value  vs.  Frost Growth Equity

Jhancock Disciplined

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Disciplined Value are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jhancock Disciplined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Frost Growth Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Frost Growth Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Jhancock Disciplined and Frost Growth

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

The idea behind Jhancock Disciplined Value and Frost Growth 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.