Correlation Between Aquagold International and John Hancock
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and John Hancock Bond, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and John Hancock.
Diversification Opportunities for Aquagold International and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Aquagold International 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 Aquagold International 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 Bond has no effect on the direction of Aquagold International i.e., Aquagold International and John Hancock go up and down completely randomly.
Pair Corralation between Aquagold International and John Hancock
Given the investment horizon of 90 days Aquagold International is expected to generate 121.76 times more return on investment than John Hancock. However, Aquagold International is 121.76 times more volatile than John Hancock Bond. It trades about 0.06 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.04 per unit of risk. If you would invest 25.00 in Aquagold International on August 29, 2024 and sell it today you would lose (24.40) from holding Aquagold International or give up 97.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. John Hancock Bond
Performance |
| Timeline |
| Aquagold International |
| John Hancock Bond |
Aquagold International and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and John Hancock
The main advantage of trading using opposite Aquagold International and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| John Hancock vs. Pimco Income Fund | John Hancock vs. HUMANA INC | John Hancock vs. Aquagold International | John Hancock vs. Barloworld Ltd ADR |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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