Correlation Between Jhancock Global and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Balanced Fund 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 Global and Balanced Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Global Equity and Balanced Fund Retail, you can compare the effects of market volatilities on Jhancock Global and Balanced Fund 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 Global with a short position of Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Balanced Fund.
Diversification Opportunities for Jhancock Global and Balanced Fund
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Jhancock and Balanced is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Balanced Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Retail and Jhancock Global 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 Global Equity are associated (or correlated) with Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Retail has no effect on the direction of Jhancock Global i.e., Jhancock Global and Balanced Fund go up and down completely randomly.
Pair Corralation between Jhancock Global and Balanced Fund
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 1.29 times more return on investment than Balanced Fund. However, Jhancock Global is 1.29 times more volatile than Balanced Fund Retail. It trades about 0.28 of its potential returns per unit of risk. Balanced Fund Retail is currently generating about 0.28 per unit of risk. If you would invest 1,169 in Jhancock Global Equity on April 30, 2025 and sell it today you would earn a total of 128.00 from holding Jhancock Global Equity or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Balanced Fund Retail
Performance |
| Timeline |
| Jhancock Global Equity |
| Balanced Fund Retail |
Jhancock Global and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Balanced Fund
The main advantage of trading using opposite Jhancock Global and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| Jhancock Global vs. Large Cap Growth Profund | Jhancock Global vs. Vest Large Cap | Jhancock Global vs. Nuveen Large Cap | Jhancock Global vs. Dreyfus Large Cap |
| Balanced Fund vs. Muirfield Fund Retail | Balanced Fund vs. Dynamic Growth Fund | Balanced Fund vs. Infrastructure Fund Retail | Balanced Fund vs. Quantex Fund Retail |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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