Correlation Between Artisan Thematic and John Hancock
Can any of the company-specific risk be diversified away by investing in both Artisan Thematic 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 Thematic 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 Thematic Fund and John Hancock Ii, you can compare the effects of market volatilities on Artisan Thematic 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 Thematic with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Thematic and John Hancock.
Diversification Opportunities for Artisan Thematic and John Hancock
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and John is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Thematic Fund and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii and Artisan Thematic 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 Thematic 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 Ii has no effect on the direction of Artisan Thematic i.e., Artisan Thematic and John Hancock go up and down completely randomly.
Pair Corralation between Artisan Thematic and John Hancock
Assuming the 90 days horizon Artisan Thematic is expected to generate 1.04 times less return on investment than John Hancock. But when comparing it to its historical volatility, Artisan Thematic Fund is 1.2 times less risky than John Hancock. It trades about 0.1 of its potential returns per unit of risk. John Hancock Ii is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,719 in John Hancock Ii on September 3, 2024 and sell it today you would earn a total of 247.00 from holding John Hancock Ii or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Artisan Thematic Fund vs. John Hancock Ii
Performance |
| Timeline |
| Artisan Thematic |
| John Hancock Ii |
Artisan Thematic and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Thematic and John Hancock
The main advantage of trading using opposite Artisan Thematic and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Thematic 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 Thematic vs. Gmo High Yield | Artisan Thematic vs. Maryland Tax Free Bond | Artisan Thematic vs. T Rowe Price | Artisan Thematic vs. California Bond Fund |
| John Hancock vs. Vanguard Small Cap Value | John Hancock vs. Vanguard Small Cap Value | John Hancock vs. Us Small Cap | John Hancock vs. Us Targeted Value |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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