Correlation Between John Hancock and Amundi Climate
Can any of the company-specific risk be diversified away by investing in both John Hancock and Amundi Climate 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 John Hancock and Amundi Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Amundi Climate Transition, you can compare the effects of market volatilities on John Hancock and Amundi Climate 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 John Hancock with a short position of Amundi Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Amundi Climate.
Diversification Opportunities for John Hancock and Amundi Climate
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Amundi is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Amundi Climate Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Climate Transition and John Hancock 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 John Hancock Financial are associated (or correlated) with Amundi Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Climate Transition has no effect on the direction of John Hancock i.e., John Hancock and Amundi Climate go up and down completely randomly.
Pair Corralation between John Hancock and Amundi Climate
Considering the 90-day investment horizon John Hancock Financial is expected to generate 6.38 times more return on investment than Amundi Climate. However, John Hancock is 6.38 times more volatile than Amundi Climate Transition. It trades about 0.33 of its potential returns per unit of risk. Amundi Climate Transition is currently generating about -0.11 per unit of risk. If you would invest 3,373 in John Hancock Financial on August 25, 2024 and sell it today you would earn a total of 522.00 from holding John Hancock Financial or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Amundi Climate Transition
Performance |
| Timeline |
| John Hancock Financial |
| Amundi Climate Transition |
John Hancock and Amundi Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Amundi Climate
The main advantage of trading using opposite John Hancock and Amundi Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Amundi Climate 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 Amundi Climate will offset losses from the drop in Amundi Climate's long position.| John Hancock vs. MFS High Income | John Hancock vs. MFS High Yield | John Hancock vs. Blackrock Muniholdings Quality | John Hancock vs. MFS Government Markets |
| Amundi Climate vs. 1919 Financial Services | Amundi Climate vs. John Hancock Financial | Amundi Climate vs. Blackrock Financial Institutions | Amundi Climate vs. Davis Financial 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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