Correlation Between Jhancock Mgd and J Hancock
Can any of the company-specific risk be diversified away by investing in both Jhancock Mgd and J Hancock 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 Mgd and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Mgd Acct and J Hancock Ii, you can compare the effects of market volatilities on Jhancock Mgd and J Hancock 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 Mgd with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Mgd and J Hancock.
Diversification Opportunities for Jhancock Mgd and J Hancock
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and JRETX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Mgd Acct and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii and Jhancock Mgd 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 Mgd Acct are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of Jhancock Mgd i.e., Jhancock Mgd and J Hancock go up and down completely randomly.
Pair Corralation between Jhancock Mgd and J Hancock
Assuming the 90 days horizon Jhancock Mgd Acct is expected to generate 0.3 times more return on investment than J Hancock. However, Jhancock Mgd Acct is 3.3 times less risky than J Hancock. It trades about -0.06 of its potential returns per unit of risk. J Hancock Ii is currently generating about -0.12 per unit of risk. If you would invest 1,038 in Jhancock Mgd Acct on December 10, 2024 and sell it today you would lose (11.00) from holding Jhancock Mgd Acct or give up 1.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jhancock Mgd Acct vs. J Hancock Ii
Performance |
Timeline |
Jhancock Mgd Acct |
J Hancock Ii |
Jhancock Mgd and J Hancock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jhancock Mgd and J Hancock
The main advantage of trading using opposite Jhancock Mgd and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Mgd position performs unexpectedly, J Hancock 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 J Hancock will offset losses from the drop in J Hancock's long position.Jhancock Mgd vs. Blackrock Global Longshort | Jhancock Mgd vs. Transam Short Term Bond | Jhancock Mgd vs. Calvert Short Duration | Jhancock Mgd vs. Old Westbury Short Term |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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