Correlation Between Jhancock Global and Crawford Multi

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

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

Diversification Opportunities for Jhancock Global and Crawford Multi

0.68

Correlation Coefficient

Jhancock Global  Crawford Multi

Poor diversification

The 3 months correlation between Jhancock and Crawford is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Crawford Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Multi Asset and Jhancock Global 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 Global Equity are associated (or correlated) with Crawford Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Multi Asset has no effect on the direction of Jhancock Global i.e., Jhancock Global and Crawford Multi go up and down completely randomly.

Pair Corralation between Jhancock Global and Crawford Multi

Assuming the 90 days horizon Jhancock Global is expected to generate 1.13 times less return on investment than Crawford Multi. In addition to that, Jhancock Global is 1.57 times more volatile than Crawford Multi Asset Income. It trades about 0.03 of its total potential returns per unit of risk. Crawford Multi Asset Income is currently generating about 0.06 per unit of volatility. If you would invest  2,296  in Crawford Multi Asset Income on September 29, 2024 and sell it today you would earn a total of  345.00  from holding Crawford Multi Asset Income or generate 15.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Jhancock Global Equity  vs.  Crawford Multi Asset Income

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 fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Crawford Multi Asset

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Jhancock Global and Crawford Multi

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

The idea behind Jhancock Global Equity and Crawford Multi Asset Income 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.