Correlation Between Jhancock New and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Jhancock New and Ambrus Core 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 New and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock New Opportunities and Ambrus Core Bond, you can compare the effects of market volatilities on Jhancock New and Ambrus Core 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 New with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock New and Ambrus Core.
Diversification Opportunities for Jhancock New and Ambrus Core
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jhancock and Ambrus is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock New Opportunities and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond and Jhancock New 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 New Opportunities are associated (or correlated) with Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Jhancock New i.e., Jhancock New and Ambrus Core go up and down completely randomly.
Pair Corralation between Jhancock New and Ambrus Core
Assuming the 90 days horizon Jhancock New Opportunities is expected to generate 8.58 times more return on investment than Ambrus Core. However, Jhancock New is 8.58 times more volatile than Ambrus Core Bond. It trades about 0.01 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about -0.05 per unit of risk. If you would invest 2,654 in Jhancock New Opportunities on September 25, 2024 and sell it today you would earn a total of 4.00 from holding Jhancock New Opportunities or generate 0.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.62% |
Values | Daily Returns |
Jhancock New Opportunities vs. Ambrus Core Bond
Performance |
Timeline |
Jhancock New Opportu |
Ambrus Core Bond |
Jhancock New and Ambrus Core Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jhancock New and Ambrus Core
The main advantage of trading using opposite Jhancock New and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock New position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.Jhancock New vs. Regional Bank Fund | Jhancock New vs. Regional Bank Fund | Jhancock New vs. Multimanager Lifestyle Moderate | Jhancock New vs. Multimanager Lifestyle Balanced |
Ambrus Core vs. Alpine Ultra Short | Ambrus Core vs. Astor Longshort Fund | Ambrus Core vs. Siit Ultra Short | Ambrus Core vs. Ab Select Longshort |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Global Correlations Find global opportunities by holding instruments from different markets |