Correlation Between John Hancock and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fidelity Freedom 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 Freedom 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 Freedom Blend, you can compare the effects of market volatilities on John Hancock and Fidelity Freedom 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 Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fidelity Freedom.
Diversification Opportunities for John Hancock and Fidelity Freedom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend 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 Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of John Hancock i.e., John Hancock and Fidelity Freedom go up and down completely randomly.
Pair Corralation between John Hancock and Fidelity Freedom
If you would invest 3,530 in John Hancock Financial on October 25, 2024 and sell it today you would earn a total of 187.00 from holding John Hancock Financial or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.22% |
| Values | Daily Returns |
John Hancock Financial vs. Fidelity Freedom Blend
Performance |
| Timeline |
| John Hancock Financial |
| Fidelity Freedom Blend |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Fidelity Freedom
The main advantage of trading using opposite John Hancock and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom'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 Freedom vs. Western Assets Emerging | Fidelity Freedom vs. Growth Strategy Fund | Fidelity Freedom vs. Commodities Strategy Fund | Fidelity Freedom vs. Transamerica Emerging Markets |
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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