Correlation Between Jhancock Disciplined and Brandes Emerging
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined and Brandes Emerging 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 Disciplined and Brandes Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Disciplined Value and Brandes Emerging Markets, you can compare the effects of market volatilities on Jhancock Disciplined and Brandes Emerging 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 Disciplined with a short position of Brandes Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and Brandes Emerging.
Diversification Opportunities for Jhancock Disciplined and Brandes Emerging
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Brandes is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value and Brandes Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Emerging Markets and Jhancock Disciplined 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 Disciplined Value are associated (or correlated) with Brandes Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Emerging Markets has no effect on the direction of Jhancock Disciplined i.e., Jhancock Disciplined and Brandes Emerging go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and Brandes Emerging
Assuming the 90 days horizon Jhancock Disciplined is expected to generate 2.19 times less return on investment than Brandes Emerging. But when comparing it to its historical volatility, Jhancock Disciplined Value is 1.13 times less risky than Brandes Emerging. It trades about 0.1 of its potential returns per unit of risk. Brandes Emerging Markets is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,087 in Brandes Emerging Markets on September 10, 2025 and sell it today you would earn a total of 110.00 from holding Brandes Emerging Markets or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Disciplined Value vs. Brandes Emerging Markets
Performance |
| Timeline |
| Jhancock Disciplined |
| Brandes Emerging Markets |
Jhancock Disciplined and Brandes Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Disciplined and Brandes Emerging
The main advantage of trading using opposite Jhancock Disciplined and Brandes Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined position performs unexpectedly, Brandes Emerging 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 Brandes Emerging will offset losses from the drop in Brandes Emerging's long position.| Jhancock Disciplined vs. Gamco Global Opportunity | Jhancock Disciplined vs. The Hartford Global | Jhancock Disciplined vs. Legg Mason Global | Jhancock Disciplined vs. Rbc Bluebay Global |
| Brandes Emerging vs. American Mutual Fund | Brandes Emerging vs. Fidelity Large Cap | Brandes Emerging vs. Jhancock Disciplined Value | Brandes Emerging vs. Dana Large Cap |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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