Correlation Between Jhancock Multi and Multi Index
Can any of the company-specific risk be diversified away by investing in both Jhancock Multi and Multi Index 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 Multi Index 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 Multi Index 2025 Lifetime, you can compare the effects of market volatilities on Jhancock Multi and Multi Index 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 Multi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Multi and Multi Index.
Diversification Opportunities for Jhancock Multi and Multi Index
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Jhancock and Multi is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Multi Index 2065 and Multi Index 2025 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2025 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 Multi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2025 has no effect on the direction of Jhancock Multi i.e., Jhancock Multi and Multi Index go up and down completely randomly.
Pair Corralation between Jhancock Multi and Multi Index
Assuming the 90 days horizon Jhancock Multi Index 2065 is expected to generate 1.78 times more return on investment than Multi Index. However, Jhancock Multi is 1.78 times more volatile than Multi Index 2025 Lifetime. It trades about 0.23 of its potential returns per unit of risk. Multi Index 2025 Lifetime is currently generating about 0.26 per unit of risk. If you would invest 1,474 in Jhancock Multi Index 2065 on May 31, 2025 and sell it today you would earn a total of 125.00 from holding Jhancock Multi Index 2065 or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Multi Index 2065 vs. Multi Index 2025 Lifetime
Performance |
| Timeline |
| Jhancock Multi Index |
| Multi Index 2025 |
Jhancock Multi and Multi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Multi and Multi Index
The main advantage of trading using opposite Jhancock Multi and Multi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Multi position performs unexpectedly, Multi Index 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 Multi Index will offset losses from the drop in Multi Index's long position.| Jhancock Multi vs. Regional Bank Fund | Jhancock Multi vs. Regional Bank Fund | Jhancock Multi vs. Multimanager Lifestyle Moderate | Jhancock Multi vs. Multimanager Lifestyle Balanced |
| Multi Index vs. Great West Inflation Protected Securities | Multi Index vs. Ab Bond Inflation | Multi Index vs. Pimco Inflation Response | Multi Index vs. Short Duration Inflation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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