Correlation Between John Hancock and Chartwell Small
Can any of the company-specific risk be diversified away by investing in both John Hancock and Chartwell Small 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 Chartwell Small 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 Chartwell Small Cap, you can compare the effects of market volatilities on John Hancock and Chartwell Small 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 Chartwell Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Chartwell Small.
Diversification Opportunities for John Hancock and Chartwell Small
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Chartwell is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Chartwell Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chartwell Small Cap 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 Chartwell Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chartwell Small Cap has no effect on the direction of John Hancock i.e., John Hancock and Chartwell Small go up and down completely randomly.
Pair Corralation between John Hancock and Chartwell Small
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.17 times more return on investment than Chartwell Small. However, John Hancock is 1.17 times more volatile than Chartwell Small Cap. It trades about 0.22 of its potential returns per unit of risk. Chartwell Small Cap is currently generating about 0.15 per unit of risk. If you would invest 3,358 in John Hancock Financial on September 13, 2024 and sell it today you would earn a total of 497.00 from holding John Hancock Financial or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Chartwell Small Cap
Performance |
| Timeline |
| John Hancock Financial |
| Chartwell Small Cap |
John Hancock and Chartwell Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Chartwell Small
The main advantage of trading using opposite John Hancock and Chartwell Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Chartwell Small 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 Chartwell Small will offset losses from the drop in Chartwell Small'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 |
| Chartwell Small vs. Multisector Bond Sma | Chartwell Small vs. Touchstone Premium Yield | Chartwell Small vs. Ab Global Bond | Chartwell Small vs. Alliancebernstein Bond |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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