Correlation Between Ms Global and Jhancock Global
Can any of the company-specific risk be diversified away by investing in both Ms Global and Jhancock Global 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 Ms Global and Jhancock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ms Global Fixed and Jhancock Global Equity, you can compare the effects of market volatilities on Ms Global and Jhancock Global 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 Ms Global with a short position of Jhancock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ms Global and Jhancock Global.
Diversification Opportunities for Ms Global and Jhancock Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MFIRX and Jhancock is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ms Global Fixed and Jhancock Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Global Equity and Ms 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 Ms Global Fixed are associated (or correlated) with Jhancock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Global Equity has no effect on the direction of Ms Global i.e., Ms Global and Jhancock Global go up and down completely randomly.
Pair Corralation between Ms Global and Jhancock Global
Assuming the 90 days horizon Ms Global is expected to generate 1.21 times less return on investment than Jhancock Global. But when comparing it to its historical volatility, Ms Global Fixed is 3.87 times less risky than Jhancock Global. It trades about 0.37 of its potential returns per unit of risk. Jhancock Global Equity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,284 in Jhancock Global Equity on May 28, 2025 and sell it today you would earn a total of 20.00 from holding Jhancock Global Equity or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ms Global Fixed vs. Jhancock Global Equity
Performance |
| Timeline |
| Ms Global Fixed |
| Jhancock Global Equity |
Ms Global and Jhancock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ms Global and Jhancock Global
The main advantage of trading using opposite Ms Global and Jhancock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ms Global position performs unexpectedly, Jhancock Global 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 Jhancock Global will offset losses from the drop in Jhancock Global's long position.| Ms Global vs. Payden High Income | Ms Global vs. Neuberger Berman Income | Ms Global vs. Dunham High Yield | Ms Global vs. Ab High Income |
| Jhancock Global vs. California Municipal Portfolio | Jhancock Global vs. Calvert Bond Portfolio | Jhancock Global vs. Ab Bond Inflation | Jhancock Global vs. Short Intermediate Bond Fund |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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