Correlation Between Global Growth and John Hancock
Can any of the company-specific risk be diversified away by investing in both Global Growth 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 Global Growth and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Growth Fund and John Hancock Financial, you can compare the effects of market volatilities on Global Growth 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 Global Growth with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Growth and John Hancock.
Diversification Opportunities for Global Growth and John Hancock
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and John is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global Growth Fund and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Global Growth 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 Global Growth Fund 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 Financial has no effect on the direction of Global Growth i.e., Global Growth and John Hancock go up and down completely randomly.
Pair Corralation between Global Growth and John Hancock
Assuming the 90 days horizon Global Growth Fund is expected to generate 0.76 times more return on investment than John Hancock. However, Global Growth Fund is 1.32 times less risky than John Hancock. It trades about 0.01 of its potential returns per unit of risk. John Hancock Financial is currently generating about -0.06 per unit of risk. If you would invest 1,310 in Global Growth Fund on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Global Growth Fund or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Growth Fund vs. John Hancock Financial
Performance |
| Timeline |
| Global Growth |
| John Hancock Financial |
Global Growth and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Growth and John Hancock
The main advantage of trading using opposite Global Growth and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Growth 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.| Global Growth vs. Angel Oak Financial | Global Growth vs. Goldman Sachs Financial | Global Growth vs. John Hancock Financial | Global Growth vs. Gabelli Global Financial |
| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |