Correlation Between Jhancock Multi-index and Global Absolute
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi-index and Global Absolute 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-index and Global Absolute 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 Global Absolute Return, you can compare the effects of market volatilities on Jhancock Multi-index and Global Absolute 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-index with a short position of Global Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi-index and Global Absolute.
Diversification Opportunities for Jhancock Multi-index and Global Absolute
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Global is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Global Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Absolute Return and Jhancock Multi-index 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 Global Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Absolute Return has no effect on the direction of Jhancock Multi-index i.e., Jhancock Multi-index and Global Absolute go up and down completely randomly.
Pair Corralation between Jhancock Multi-index and Global Absolute
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to generate 1.36 times more return on investment than Global Absolute. However, Jhancock Multi-index is 1.36 times more volatile than Global Absolute Return. It trades about 0.11 of its potential returns per unit of risk. Global Absolute Return is currently generating about 0.05 per unit of risk. If you would invest 1,607 in Jhancock Multi Index 2065 on September 7, 2025 and sell it today you would earn a total of 77.00 from holding Jhancock Multi Index 2065 or generate 4.79% 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. Global Absolute Return
Performance |
| Timeline |
| Jhancock Multi Index |
| Global Absolute Return |
Jhancock Multi-index and Global Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multi-index and Global Absolute
The main advantage of trading using opposite Jhancock Multi-index and Global Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi-index position performs unexpectedly, Global Absolute 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 Global Absolute will offset losses from the drop in Global Absolute's long position.| Jhancock Multi-index vs. Regional Bank Fund | Jhancock Multi-index vs. Regional Bank Fund | Jhancock Multi-index vs. Multimanager Lifestyle Moderate | Jhancock Multi-index vs. Multimanager Lifestyle Balanced |
| Global Absolute vs. Regional Bank Fund | Global Absolute vs. Regional Bank Fund | Global Absolute vs. Multimanager Lifestyle Moderate | Global Absolute vs. Multimanager Lifestyle Balanced |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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