Correlation Between Jhancock Real and Ab National

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Can any of the company-specific risk be diversified away by investing in both Jhancock Real and Ab National 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 Real and Ab National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Real Estate and Ab National Portfolio, you can compare the effects of market volatilities on Jhancock Real and Ab National 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 Real with a short position of Ab National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Ab National.

Diversification Opportunities for Jhancock Real and Ab National

0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between Jhancock and ALTHX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and Ab National Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab National Portfolio and Jhancock Real 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 Real Estate are associated (or correlated) with Ab National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab National Portfolio has no effect on the direction of Jhancock Real i.e., Jhancock Real and Ab National go up and down completely randomly.

Pair Corralation between Jhancock Real and Ab National

Assuming the 90 days horizon Jhancock Real Estate is expected to generate 3.59 times more return on investment than Ab National. However, Jhancock Real is 3.59 times more volatile than Ab National Portfolio. It trades about 0.12 of its potential returns per unit of risk. Ab National Portfolio is currently generating about 0.04 per unit of risk. If you would invest  1,278  in Jhancock Real Estate on September 5, 2024 and sell it today you would earn a total of  83.00  from holding Jhancock Real Estate or generate 6.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Jhancock Real Estate  vs.  Ab National Portfolio

 Performance 
       Timeline  
Jhancock Real Estate 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Real Estate are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Jhancock Real may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Ab National Portfolio 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Ab National Portfolio are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Ab National is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jhancock Real and Ab National Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jhancock Real and Ab National

The main advantage of trading using opposite Jhancock Real and Ab National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, Ab National 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 Ab National will offset losses from the drop in Ab National's long position.
The idea behind Jhancock Real Estate and Ab National Portfolio 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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