Correlation Between John Hancock and Transamerica Flexible
Can any of the company-specific risk be diversified away by investing in both John Hancock and Transamerica Flexible 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 Transamerica Flexible 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 Transamerica Flexible Income, you can compare the effects of market volatilities on John Hancock and Transamerica Flexible 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 Transamerica Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Transamerica Flexible.
Diversification Opportunities for John Hancock and Transamerica Flexible
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Transamerica is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Transamerica Flexible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Flexible 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 Transamerica Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Flexible has no effect on the direction of John Hancock i.e., John Hancock and Transamerica Flexible go up and down completely randomly.
Pair Corralation between John Hancock and Transamerica Flexible
Considering the 90-day investment horizon John Hancock Financial is expected to generate 5.11 times more return on investment than Transamerica Flexible. However, John Hancock is 5.11 times more volatile than Transamerica Flexible Income. It trades about 0.04 of its potential returns per unit of risk. Transamerica Flexible Income is currently generating about 0.03 per unit of risk. If you would invest 2,867 in John Hancock Financial on September 2, 2024 and sell it today you would earn a total of 1,073 from holding John Hancock Financial or generate 37.43% 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. Transamerica Flexible Income
Performance |
| Timeline |
| John Hancock Financial |
| Transamerica Flexible |
John Hancock and Transamerica Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Transamerica Flexible
The main advantage of trading using opposite John Hancock and Transamerica Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Transamerica Flexible 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 Transamerica Flexible will offset losses from the drop in Transamerica Flexible'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 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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