Correlation Between John Hancock and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Gold, you can compare the effects of market volatilities on John Hancock and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fidelity Advisor.
Diversification Opportunities for John Hancock and Fidelity Advisor
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Fidelity is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Fidelity Advisor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Gold 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Gold has no effect on the direction of John Hancock i.e., John Hancock and Fidelity Advisor go up and down completely randomly.
Pair Corralation between John Hancock and Fidelity Advisor
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Fidelity Advisor. But the fund apears to be less risky and, when comparing its historical volatility, John Hancock Financial is 1.19 times less risky than Fidelity Advisor. The fund trades about -0.28 of its potential returns per unit of risk. The Fidelity Advisor Gold is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 2,767 in Fidelity Advisor Gold on October 10, 2024 and sell it today you would lose (175.00) from holding Fidelity Advisor Gold or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Fidelity Advisor Gold
Performance |
| Timeline |
| John Hancock Financial |
| Fidelity Advisor Gold |
John Hancock and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Fidelity Advisor
The main advantage of trading using opposite John Hancock and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor'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 |
| Fidelity Advisor vs. Delaware Healthcare Fund | Fidelity Advisor vs. Lord Abbett Health | Fidelity Advisor vs. Fidelity Advisor Health | Fidelity Advisor vs. Baillie Gifford Health |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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