Correlation Between Jhancock Global and Navian Waycross

Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Navian Waycross 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 Navian Waycross 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 Navian Waycross Longshort, you can compare the effects of market volatilities on Jhancock Global and Navian Waycross 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 Navian Waycross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Navian Waycross.

Diversification Opportunities for Jhancock Global and Navian Waycross

-0.17

Correlation Coefficient

Jhancock Global  Navian Waycross

Good diversification

The 3 months correlation between Jhancock and Navian is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Navian Waycross Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navian Waycross Longshort 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 Navian Waycross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navian Waycross Longshort has no effect on the direction of Jhancock Global i.e., Jhancock Global and Navian Waycross go up and down completely randomly.

Pair Corralation between Jhancock Global and Navian Waycross

Assuming the 90 days horizon Jhancock Global Equity is expected to under-perform the Navian Waycross. In addition to that, Jhancock Global is 2.18 times more volatile than Navian Waycross Longshort. It trades about -0.06 of its total potential returns per unit of risk. Navian Waycross Longshort is currently generating about 0.06 per unit of volatility. If you would invest  1,728  in Navian Waycross Longshort on September 29, 2024 and sell it today you would earn a total of  62.00  from holding Navian Waycross Longshort or generate 3.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Jhancock Global Equity  vs.  Navian Waycross Longshort

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.

Navian Waycross Longshort

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Navian Waycross Longshort are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Navian Waycross 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 Navian Waycross

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

The idea behind Jhancock Global Equity and Navian Waycross Longshort 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.