Correlation Between Allianzgi Health and Jhancock Global

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

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

Diversification Opportunities for Allianzgi Health and Jhancock Global

0.53

Correlation Coefficient

Allianzgi Health  Jhancock Global

Very weak diversification

The 3 months correlation between Allianzgi and Jhancock is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Health Sciences and Jhancock Global Climate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Climate and Allianzgi Health 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 Allianzgi Health Sciences are associated (or correlated) with Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Climate has no effect on the direction of Allianzgi Health i.e., Allianzgi Health and Jhancock Global go up and down completely randomly.

Pair Corralation between Allianzgi Health and Jhancock Global

Assuming the 90 days horizon Allianzgi Health Sciences is expected to generate 0.93 times more return on investment than Jhancock Global. However, Allianzgi Health Sciences is 1.07 times less risky than Jhancock Global. It trades about -0.01 of its potential returns per unit of risk. Jhancock Global Climate is currently generating about -0.02 per unit of risk. If you would invest  1,698  in Allianzgi Health Sciences on October 4, 2024 and sell it today you would lose (87.00) from holding Allianzgi Health Sciences or give up 5.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	23.43%
Values	Daily Returns

Allianzgi Health Sciences  vs.  Jhancock Global Climate

Allianzgi Health Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Health Sciences has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Jhancock Global Climate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jhancock Global Climate has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Allianzgi Health and Jhancock Global

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

The idea behind Allianzgi Health Sciences and Jhancock Global Climate 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.