Correlation Between John Hancock and Integrity Growth
Can any of the company-specific risk be diversified away by investing in both John Hancock and Integrity Growth 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 Integrity Growth 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 Integrity Growth Income, you can compare the effects of market volatilities on John Hancock and Integrity Growth 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 Integrity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Integrity Growth.
Diversification Opportunities for John Hancock and Integrity Growth
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Integrity is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Integrity Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity Growth Income 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 Integrity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Growth Income has no effect on the direction of John Hancock i.e., John Hancock and Integrity Growth go up and down completely randomly.
Pair Corralation between John Hancock and Integrity Growth
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Integrity Growth. In addition to that, John Hancock is 1.51 times more volatile than Integrity Growth Income. It trades about -0.27 of its total potential returns per unit of risk. Integrity Growth Income is currently generating about -0.19 per unit of volatility. If you would invest 10,464 in Integrity Growth Income on October 9, 2024 and sell it today you would lose (420.00) from holding Integrity Growth Income or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Integrity Growth Income
Performance |
| Timeline |
| John Hancock Financial |
| Integrity Growth Income |
John Hancock and Integrity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Integrity Growth
The main advantage of trading using opposite John Hancock and Integrity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Integrity Growth 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 Integrity Growth will offset losses from the drop in Integrity Growth'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 |
| Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Nebraska Municipal Fund |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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