Correlation Between John Hancock and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both John Hancock and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Investors, you can compare the effects of market volatilities on John Hancock and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Tekla Healthcare.
Diversification Opportunities for John Hancock and Tekla Healthcare
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Tekla is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of John Hancock i.e., John Hancock and Tekla Healthcare go up and down completely randomly.
Pair Corralation between John Hancock and Tekla Healthcare
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.51 times more return on investment than Tekla Healthcare. However, John Hancock is 1.51 times more volatile than Tekla Healthcare Investors. It trades about 0.39 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.15 per unit of risk. If you would invest 3,378 in John Hancock Financial on September 3, 2024 and sell it today you would earn a total of 562.00 from holding John Hancock Financial or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Tekla Healthcare Investors
Performance |
| Timeline |
| John Hancock Financial |
| Tekla Healthcare Inv |
John Hancock and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Tekla Healthcare
The main advantage of trading using opposite John Hancock and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare'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 |
| Tekla Healthcare vs. Tekla Healthcare Opportunities | Tekla Healthcare vs. Eaton Vance Tax | Tekla Healthcare vs. Tekla World Healthcare | Tekla Healthcare vs. Cohen Steers Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |