Correlation Between Jhancock Global and Inflation Linked
Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Inflation Linked 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 Inflation Linked 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 Inflation Linked Fixed Income, you can compare the effects of market volatilities on Jhancock Global and Inflation Linked 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 Inflation Linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Inflation Linked.
Diversification Opportunities for Jhancock Global and Inflation Linked
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jhancock and Inflation is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Inflation Linked Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Linked Fixed 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 Inflation Linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Linked Fixed has no effect on the direction of Jhancock Global i.e., Jhancock Global and Inflation Linked go up and down completely randomly.
Pair Corralation between Jhancock Global and Inflation Linked
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 2.12 times more return on investment than Inflation Linked. However, Jhancock Global is 2.12 times more volatile than Inflation Linked Fixed Income. It trades about 0.3 of its potential returns per unit of risk. Inflation Linked Fixed Income is currently generating about 0.05 per unit of risk. If you would invest 1,159 in Jhancock Global Equity on April 26, 2025 and sell it today you would earn a total of 133.00 from holding Jhancock Global Equity or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Inflation Linked Fixed Income
Performance |
| Timeline |
| Jhancock Global Equity |
| Inflation Linked Fixed |
Jhancock Global and Inflation Linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Inflation Linked
The main advantage of trading using opposite Jhancock Global and Inflation Linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Inflation Linked 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 Inflation Linked will offset losses from the drop in Inflation Linked's long position.| Jhancock Global vs. Chase Growth Fund | Jhancock Global vs. Pace Large Growth | Jhancock Global vs. Needham Aggressive Growth | Jhancock Global vs. Ftfa Franklin Templeton Growth |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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