Correlation Between US Commodity and John Hancock
Can any of the company-specific risk be diversified away by investing in both US Commodity 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 US Commodity and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Commodity Funds and John Hancock Hedged, you can compare the effects of market volatilities on US Commodity 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 US Commodity with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Commodity and John Hancock.
Diversification Opportunities for US Commodity and John Hancock
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ALUM and John is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding US Commodity Funds and John Hancock Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Hedged and US Commodity 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 US Commodity Funds 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 Hedged has no effect on the direction of US Commodity i.e., US Commodity and John Hancock go up and down completely randomly.
Pair Corralation between US Commodity and John Hancock
If you would invest 1,072 in John Hancock Hedged on September 1, 2024 and sell it today you would earn a total of 39.00 from holding John Hancock Hedged or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
US Commodity Funds vs. John Hancock Hedged
Performance |
| Timeline |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| John Hancock Hedged |
US Commodity and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Commodity and John Hancock
The main advantage of trading using opposite US Commodity and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Commodity 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.| US Commodity vs. Goldman Sachs Physical | US Commodity vs. iShares Gold Trust | US Commodity vs. iShares Bloomberg Roll |
| John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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