Correlation Between Jhancock Disciplined and Federated High
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined and Federated High 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 Federated High 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 Federated High Yield, you can compare the effects of market volatilities on Jhancock Disciplined and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and Federated High.
Diversification Opportunities for Jhancock Disciplined and Federated High
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Jhancock and Federated is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Jhancock Disciplined i.e., Jhancock Disciplined and Federated High go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and Federated High
Assuming the 90 days horizon Jhancock Disciplined Value is expected to generate 3.0 times more return on investment than Federated High. However, Jhancock Disciplined is 3.0 times more volatile than Federated High Yield. It trades about 0.27 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.3 per unit of risk. If you would invest 2,204 in Jhancock Disciplined Value on April 29, 2025 and sell it today you would earn a total of 254.00 from holding Jhancock Disciplined Value or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Disciplined Value vs. Federated High Yield
Performance |
| Timeline |
| Jhancock Disciplined |
| Federated High Yield |
Jhancock Disciplined and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Disciplined and Federated High
The main advantage of trading using opposite Jhancock Disciplined and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Jhancock Disciplined vs. Baron Real Estate | Jhancock Disciplined vs. Goldman Sachs Real | Jhancock Disciplined vs. Forum Real Estate | Jhancock Disciplined vs. Vanguard Reit Index |
| Federated High vs. Transamerica International Small | Federated High vs. Federated Mdt Small | Federated High vs. Praxis Small Cap | Federated High vs. Needham Small 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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