Correlation Between Jhancock Multi and Jhancock Short
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi and Jhancock Short 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 Multi and Jhancock Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Multi Index 2065 and Jhancock Short Duration, you can compare the effects of market volatilities on Jhancock Multi and Jhancock Short 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 Multi with a short position of Jhancock Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi and Jhancock Short.
Diversification Opportunities for Jhancock Multi and Jhancock Short
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Jhancock is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Jhancock Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Short Duration and Jhancock Multi 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 Multi Index 2065 are associated (or correlated) with Jhancock Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Short Duration has no effect on the direction of Jhancock Multi i.e., Jhancock Multi and Jhancock Short go up and down completely randomly.
Pair Corralation between Jhancock Multi and Jhancock Short
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to generate 5.56 times more return on investment than Jhancock Short. However, Jhancock Multi is 5.56 times more volatile than Jhancock Short Duration. It trades about 0.07 of its potential returns per unit of risk. Jhancock Short Duration is currently generating about 0.11 per unit of risk. If you would invest 1,032 in Jhancock Multi Index 2065 on March 8, 2024 and sell it today you would earn a total of 342.00 from holding Jhancock Multi Index 2065 or generate 33.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jhancock Multi Index 2065 vs. Jhancock Short Duration
Performance |
Timeline |
Jhancock Multi Index |
Jhancock Short Duration |
Jhancock Multi and Jhancock Short Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jhancock Multi and Jhancock Short
The main advantage of trading using opposite Jhancock Multi and Jhancock Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi position performs unexpectedly, Jhancock Short 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 Short will offset losses from the drop in Jhancock Short's long position.Jhancock Multi vs. Rbc Funds Trust | Jhancock Multi vs. Commonwealth Global Fund | Jhancock Multi vs. Shelton Funds | Jhancock Multi vs. Ab Value Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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