Correlation Between Global Gold and John Hancock
Can any of the company-specific risk be diversified away by investing in both Global Gold 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 Gold 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 Gold Fund and John Hancock Money, you can compare the effects of market volatilities on Global Gold 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 Gold with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and John Hancock.
Diversification Opportunities for Global Gold and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Global Gold 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 Gold 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 Money has no effect on the direction of Global Gold i.e., Global Gold and John Hancock go up and down completely randomly.
Pair Corralation between Global Gold and John Hancock
If you would invest 908.00 in Global Gold Fund on October 18, 2024 and sell it today you would earn a total of 360.00 from holding Global Gold Fund or generate 39.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Global Gold Fund vs. John Hancock Money
Performance |
| Timeline |
| Global Gold Fund |
| John Hancock Money |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Gold and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and John Hancock
The main advantage of trading using opposite Global Gold and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold 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 Gold vs. Boyd Watterson Limited | Global Gold vs. Rbb Fund | Global Gold vs. Tax Managed Large Cap | Global Gold vs. Qs Growth Fund |
| John Hancock vs. Global Gold Fund | John Hancock vs. Goldman Sachs Short | John Hancock vs. Short Precious Metals | John Hancock vs. World Precious Minerals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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