Correlation Between Elysee Development and John Hancock
Can any of the company-specific risk be diversified away by investing in both Elysee Development 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 Elysee Development and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elysee Development Corp and John Hancock Income, you can compare the effects of market volatilities on Elysee Development 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 Elysee Development with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elysee Development and John Hancock.
Diversification Opportunities for Elysee Development and John Hancock
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Elysee and John is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Elysee Development Corp 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 Elysee Development 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 Elysee Development Corp 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 Elysee Development i.e., Elysee Development and John Hancock go up and down completely randomly.
Pair Corralation between Elysee Development and John Hancock
Assuming the 90 days horizon Elysee Development Corp is expected to under-perform the John Hancock. In addition to that, Elysee Development is 12.32 times more volatile than John Hancock Income. It trades about -0.08 of its total potential returns per unit of risk. John Hancock Income is currently generating about -0.03 per unit of volatility. If you would invest 1,160 in John Hancock Income on August 28, 2024 and sell it today you would lose (4.00) from holding John Hancock Income or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elysee Development Corp vs. John Hancock Income
Performance |
| Timeline |
| Elysee Development Corp |
| John Hancock Income |
Elysee Development and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elysee Development and John Hancock
The main advantage of trading using opposite Elysee Development and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elysee Development 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.| Elysee Development vs. Blackhawk Growth Corp | Elysee Development vs. Urbana | Elysee Development vs. Guardian Capital Group | Elysee Development vs. Flow Capital Corp |
| John Hancock vs. Aurora Innovation | 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 Stocks Directory module to find actively traded stocks across global markets.
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