Correlation Between Small-cap Value and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Small-cap Value 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 Small-cap Value and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Value Fund and Jhancock Global Equity, you can compare the effects of market volatilities on Small-cap Value 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 Small-cap Value with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small-cap Value and Jhancock Global.
Diversification Opportunities for Small-cap Value and Jhancock Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Small-cap and Jhancock is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Value Fund and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity and Small-cap Value 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 Small Cap Value Fund 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 Equity has no effect on the direction of Small-cap Value i.e., Small-cap Value and Jhancock Global go up and down completely randomly.
Pair Corralation between Small-cap Value and Jhancock Global
Assuming the 90 days horizon Small Cap Value Fund is expected to generate 2.06 times more return on investment than Jhancock Global. However, Small-cap Value is 2.06 times more volatile than Jhancock Global Equity. It trades about 0.16 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.13 per unit of risk. If you would invest 3,443 in Small Cap Value Fund on June 9, 2025 and sell it today you would earn a total of 427.00 from holding Small Cap Value Fund or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Small Cap Value Fund vs. Jhancock Global Equity
Performance |
| Timeline |
| Small Cap Value |
| Jhancock Global Equity |
Small-cap Value and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small-cap Value and Jhancock Global
The main advantage of trading using opposite Small-cap Value and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small-cap Value 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.| Small-cap Value vs. Us Government Securities | Small-cap Value vs. Sit Government Securities | Small-cap Value vs. Aig Government Money | Small-cap Value vs. Us Government Securities |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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