Correlation Between John Hancock and Global Growth
Can any of the company-specific risk be diversified away by investing in both John Hancock and Global Growth 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 Global Growth 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 Global Growth Fund, you can compare the effects of market volatilities on John Hancock and Global Growth 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 Global Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Global Growth.
Diversification Opportunities for John Hancock and Global Growth
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and Global is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Global Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Growth 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 Global Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Growth has no effect on the direction of John Hancock i.e., John Hancock and Global Growth go up and down completely randomly.
Pair Corralation between John Hancock and Global Growth
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Global Growth. In addition to that, John Hancock is 1.32 times more volatile than Global Growth Fund. It trades about -0.06 of its total potential returns per unit of risk. Global Growth Fund is currently generating about 0.01 per unit of volatility. If you would invest 1,310 in Global Growth Fund on September 14, 2024 and sell it today you would earn a total of 1.00 from holding Global Growth Fund or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Global Growth Fund
Performance |
| Timeline |
| John Hancock Financial |
| Global Growth |
John Hancock and Global Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Global Growth
The main advantage of trading using opposite John Hancock and Global Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Global Growth 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 Global Growth will offset losses from the drop in Global Growth's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Global Growth vs. Angel Oak Financial | Global Growth vs. Goldman Sachs Financial | Global Growth vs. John Hancock Financial | Global Growth vs. Gabelli Global Financial |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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