Correlation Between John Hancock and Us Vector
Can any of the company-specific risk be diversified away by investing in both John Hancock and Us Vector 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 Us Vector 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 Us Vector Equity, you can compare the effects of market volatilities on John Hancock and Us Vector 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 Us Vector. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Us Vector.
Diversification Opportunities for John Hancock and Us Vector
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and DFVEX is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Us Vector Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Vector Equity 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 Us Vector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Vector Equity has no effect on the direction of John Hancock i.e., John Hancock and Us Vector go up and down completely randomly.
Pair Corralation between John Hancock and Us Vector
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.97 times more return on investment than Us Vector. However, John Hancock is 1.97 times more volatile than Us Vector Equity. It trades about 0.03 of its potential returns per unit of risk. Us Vector Equity is currently generating about 0.06 per unit of risk. If you would invest 2,938 in John Hancock Financial on October 31, 2024 and sell it today you would earn a total of 785.00 from holding John Hancock Financial or generate 26.72% 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. Us Vector Equity
Performance |
| Timeline |
| John Hancock Financial |
| Us Vector Equity |
John Hancock and Us Vector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Us Vector
The main advantage of trading using opposite John Hancock and Us Vector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Us Vector 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 Us Vector will offset losses from the drop in Us Vector'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 |
| Us Vector vs. T Rowe Price | Us Vector vs. Tfa Alphagen Growth | Us Vector vs. Eip Growth And | Us Vector vs. Vy Baron 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |