Correlation Between American Express and John Hancock
Can any of the company-specific risk be diversified away by investing in both American Express 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 American Express and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and John Hancock Esg, you can compare the effects of market volatilities on American Express 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 American Express with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and John Hancock.
Diversification Opportunities for American Express and John Hancock
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and John is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding American Express and John Hancock Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Esg and American Express 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 American Express 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 Esg has no effect on the direction of American Express i.e., American Express and John Hancock go up and down completely randomly.
Pair Corralation between American Express and John Hancock
Considering the 90-day investment horizon American Express is expected to under-perform the John Hancock. In addition to that, American Express is 1.67 times more volatile than John Hancock Esg. It trades about -0.31 of its total potential returns per unit of risk. John Hancock Esg is currently generating about -0.1 per unit of volatility. If you would invest 2,327 in John Hancock Esg on November 27, 2024 and sell it today you would lose (31.00) from holding John Hancock Esg or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. John Hancock Esg
Performance |
| Timeline |
| American Express |
| John Hancock Esg |
American Express and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and John Hancock
The main advantage of trading using opposite American Express and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express 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.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| John Hancock vs. Principal Lifetime Hybrid | John Hancock vs. Dodge Cox Stock | John Hancock vs. Guidemark Large Cap | John Hancock vs. Balanced Allocation Fund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |