Correlation Between Jhancock Disciplined and Simt Small
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined and Simt Small 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 Simt Small 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 Simt Small Cap, you can compare the effects of market volatilities on Jhancock Disciplined and Simt Small 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 Simt Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and Simt Small.
Diversification Opportunities for Jhancock Disciplined and Simt Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jhancock and Simt is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value and Simt Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Small Cap 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 Simt Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Small Cap has no effect on the direction of Jhancock Disciplined i.e., Jhancock Disciplined and Simt Small go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and Simt Small
Assuming the 90 days horizon Jhancock Disciplined Value is expected to under-perform the Simt Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Jhancock Disciplined Value is 1.9 times less risky than Simt Small. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Simt Small Cap is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,903 in Simt Small Cap on September 18, 2024 and sell it today you would earn a total of 135.00 from holding Simt Small Cap or generate 3.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jhancock Disciplined Value vs. Simt Small Cap
Performance |
Timeline |
Jhancock Disciplined |
Simt Small Cap |
Jhancock Disciplined and Simt Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jhancock Disciplined and Simt Small
The main advantage of trading using opposite Jhancock Disciplined and Simt Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined position performs unexpectedly, Simt Small 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 Simt Small will offset losses from the drop in Simt Small's long position.Jhancock Disciplined vs. Regional Bank Fund | Jhancock Disciplined vs. Regional Bank Fund | Jhancock Disciplined vs. Multimanager Lifestyle Moderate | Jhancock Disciplined vs. Multimanager Lifestyle Balanced |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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