Correlation Between Jpmorgan International and Jhancock Disciplined

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jpmorgan International and Jhancock Disciplined 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 Jpmorgan International and Jhancock Disciplined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan International Equity and Jhancock Disciplined Value, you can compare the effects of market volatilities on Jpmorgan International and Jhancock Disciplined 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 Jpmorgan International with a short position of Jhancock Disciplined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan International and Jhancock Disciplined.

Diversification Opportunities for Jpmorgan International and Jhancock Disciplined

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Jpmorgan and Jhancock is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding JPMORGAN INTERNATIONAL EQUITY and JHancock Disciplined Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Disciplined and Jpmorgan International 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 Jpmorgan International Equity are associated (or correlated) with Jhancock Disciplined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Disciplined has no effect on the direction of Jpmorgan International i.e., Jpmorgan International and Jhancock Disciplined go up and down completely randomly.

Pair Corralation between Jpmorgan International and Jhancock Disciplined

Assuming the 90 days horizon Jpmorgan International Equity is expected to generate 1.03 times more return on investment than Jhancock Disciplined. However, Jpmorgan International is 1.03 times more volatile than Jhancock Disciplined Value. It trades about 0.03 of its potential returns per unit of risk. Jhancock Disciplined Value is currently generating about 0.01 per unit of risk. If you would invest  1,699  in Jpmorgan International Equity on November 24, 2023 and sell it today you would earn a total of  203.00  from holding Jpmorgan International Equity or generate 11.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.8%
ValuesDaily Returns

JPMORGAN INTERNATIONAL EQUITY  vs.  JHancock Disciplined Value

 Performance 
       Timeline  
Jpmorgan International 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan International Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Jhancock Disciplined 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Disciplined Value are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jhancock Disciplined is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan International and Jhancock Disciplined Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jpmorgan International and Jhancock Disciplined

The main advantage of trading using opposite Jpmorgan International and Jhancock Disciplined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan International position performs unexpectedly, Jhancock Disciplined 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 Disciplined will offset losses from the drop in Jhancock Disciplined's long position.
The idea behind Jpmorgan International Equity and Jhancock Disciplined Value 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.
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules