Correlation Between Jhancock Global and Qs International

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Can any of the company-specific risk be diversified away by investing in both Jhancock Global and Qs International 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 Qs International 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 Qs International Equity, you can compare the effects of market volatilities on Jhancock Global and Qs International 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 Qs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Qs International.

Diversification Opportunities for Jhancock Global and Qs International

JhancockLGFEXDiversified AwayJhancockLGFEXDiversified Away100%
0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Jhancock and LGFEX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Qs International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs International Equity 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 Qs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs International Equity has no effect on the direction of Jhancock Global i.e., Jhancock Global and Qs International go up and down completely randomly.

Pair Corralation between Jhancock Global and Qs International

Assuming the 90 days horizon Jhancock Global Equity is expected to generate 0.7 times more return on investment than Qs International. However, Jhancock Global Equity is 1.44 times less risky than Qs International. It trades about 0.0 of its potential returns per unit of risk. Qs International Equity is currently generating about -0.06 per unit of risk. If you would invest  1,352  in Jhancock Global Equity on September 15, 2024 and sell it today you would lose (1.00) from holding Jhancock Global Equity or give up 0.07% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jhancock Global Equity  vs.  Qs International Equity

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -4-202
JavaScript chart by amCharts 3.21.15JGECX LGFEX
       Timeline  
Jhancock Global Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jhancock Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Jhancock Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec13.313.3513.413.4513.513.5513.613.6513.713.75
Qs International Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Qs International Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Qs International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec18.51919.520

Jhancock Global and Qs International Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.69-1.25-0.81-0.370.01450.410.851.291.73 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15JGECX LGFEX
       Returns  

Pair Trading with Jhancock Global and Qs International

The main advantage of trading using opposite Jhancock Global and Qs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global position performs unexpectedly, Qs International 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 Qs International will offset losses from the drop in Qs International's long position.
The idea behind Jhancock Global Equity and Qs International Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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