Correlation Between Artisan Small and John Hancock
Can any of the company-specific risk be diversified away by investing in both Artisan Small 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 Artisan Small and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Small Cap and John Hancock Income, you can compare the effects of market volatilities on Artisan Small 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 Artisan Small with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Small and John Hancock.
Diversification Opportunities for Artisan Small and John Hancock
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and John is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Small Cap and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Artisan Small 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 Artisan Small Cap 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 Income has no effect on the direction of Artisan Small i.e., Artisan Small and John Hancock go up and down completely randomly.
Pair Corralation between Artisan Small and John Hancock
Assuming the 90 days horizon Artisan Small Cap is expected to generate 6.42 times more return on investment than John Hancock. However, Artisan Small is 6.42 times more volatile than John Hancock Income. It trades about 0.25 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.15 per unit of risk. If you would invest 3,731 in Artisan Small Cap on September 4, 2024 and sell it today you would earn a total of 286.00 from holding Artisan Small Cap or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Artisan Small Cap vs. John Hancock Income
Performance |
| Timeline |
| Artisan Small Cap |
| John Hancock Income |
Artisan Small and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Small and John Hancock
The main advantage of trading using opposite Artisan Small and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Small 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.| Artisan Small vs. Fuller Thaler Behavioral | Artisan Small vs. Small Cap Stock | Artisan Small vs. Legg Mason Bw | Artisan Small vs. Principal Lifetime Hybrid |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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