Correlation Between Apple and John Hancock
Can any of the company-specific risk be diversified away by investing in both Apple and John Hancock 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 Apple and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and John Hancock Tax Advantaged, you can compare the effects of market volatilities on Apple and John Hancock 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 Apple with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and John Hancock.
Diversification Opportunities for Apple and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and John Hancock Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Apple 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 Apple Inc are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Tax has no effect on the direction of Apple i.e., Apple and John Hancock go up and down completely randomly.
Pair Corralation between Apple and John Hancock
If you would invest 18,849 in Apple Inc on November 3, 2024 and sell it today you would earn a total of 4,751 from holding Apple Inc or generate 25.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Apple Inc vs. John Hancock Tax Advantaged
Performance |
| Timeline |
| Apple Inc |
| John Hancock Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apple and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and John Hancock
The main advantage of trading using opposite Apple and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.The idea behind Apple Inc and John Hancock Tax Advantaged 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.| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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