Correlation Between Jhancock Diversified and 1919 Maryland

Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and 1919 Maryland 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 Diversified and 1919 Maryland into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jhancock Diversified Macro and 1919 Maryland Tax Free, you can compare the effects of market volatilities on Jhancock Diversified and 1919 Maryland 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 Diversified with a short position of 1919 Maryland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and 1919 Maryland.

Diversification Opportunities for Jhancock Diversified and 1919 Maryland

0.86

Correlation Coefficient

Jhancock Diversified  1919 Maryland

Very poor diversification

The 3 months correlation between Jhancock and 1919 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and 1919 Maryland Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1919 Maryland Tax and Jhancock Diversified 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 Diversified Macro are associated (or correlated) with 1919 Maryland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1919 Maryland Tax has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and 1919 Maryland go up and down completely randomly.

Pair Corralation between Jhancock Diversified and 1919 Maryland

If you would invest  1,017  in Jhancock Diversified Macro on January 30, 2024 and sell it today you would earn a total of  2.00  from holding Jhancock Diversified Macro or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	4.76%
Values	Daily Returns

Jhancock Diversified Macro  vs.  1919 Maryland Tax Free

Jhancock Diversified

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Diversified Macro are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Jhancock Diversified may actually be approaching a critical reversion point that can send shares even higher in May 2024.

1919 Maryland Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1919 Maryland Tax Free has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, 1919 Maryland is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jhancock Diversified and 1919 Maryland

The main advantage of trading using opposite Jhancock Diversified and 1919 Maryland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, 1919 Maryland 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 1919 Maryland will offset losses from the drop in 1919 Maryland's long position.

The idea behind Jhancock Diversified Macro and 1919 Maryland Tax Free 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.