Correlation Between Atac Inflation and John Hancock
Can any of the company-specific risk be diversified away by investing in both Atac Inflation 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 Atac Inflation and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atac Inflation Rotation and John Hancock Ii, you can compare the effects of market volatilities on Atac Inflation 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 Atac Inflation with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and John Hancock.
Diversification Opportunities for Atac Inflation and John Hancock
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atac and John is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation 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 Atac Inflation 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 Atac Inflation Rotation 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 Atac Inflation i.e., Atac Inflation and John Hancock go up and down completely randomly.
Pair Corralation between Atac Inflation and John Hancock
Assuming the 90 days horizon Atac Inflation Rotation is expected to under-perform the John Hancock. But the mutual fund apears to be less risky and, when comparing its historical volatility, Atac Inflation Rotation is 1.4 times less risky than John Hancock. The mutual fund trades about -0.13 of its potential returns per unit of risk. The John Hancock Ii is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,682 in John Hancock Ii on October 25, 2024 and sell it today you would earn a total of 19.00 from holding John Hancock Ii or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Atac Inflation Rotation vs. John Hancock Ii
Performance |
| Timeline |
| Atac Inflation Rotation |
| John Hancock Ii |
Atac Inflation and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atac Inflation and John Hancock
The main advantage of trading using opposite Atac Inflation and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation 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.| Atac Inflation vs. ATAC Rotation ETF | Atac Inflation vs. Tidal ETF Trust | Atac Inflation vs. Quadratic Interest Rate | Atac Inflation vs. Baron Global Advantage |
| John Hancock vs. Ab Discovery Growth | John Hancock vs. Ab International Value | John Hancock vs. Small Cap Core | John Hancock vs. Ab International Growth |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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