Correlation Between John Hancock and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fisher Investments 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 Fisher Investments 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 Fisher Large Cap, you can compare the effects of market volatilities on John Hancock and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fisher Investments.
Diversification Opportunities for John Hancock and Fisher Investments
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Fisher is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of John Hancock i.e., John Hancock and Fisher Investments go up and down completely randomly.
Pair Corralation between John Hancock and Fisher Investments
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.35 times more return on investment than Fisher Investments. However, John Hancock is 1.35 times more volatile than Fisher Large Cap. It trades about 0.21 of its potential returns per unit of risk. Fisher Large Cap is currently generating about 0.12 per unit of risk. If you would invest 3,532 in John Hancock Financial on November 3, 2024 and sell it today you would earn a total of 219.00 from holding John Hancock Financial or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Fisher Large Cap
Performance |
| Timeline |
| John Hancock Financial |
| Fisher Investments |
John Hancock and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Fisher Investments
The main advantage of trading using opposite John Hancock and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' 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 |
| Fisher Investments vs. T Rowe Price | Fisher Investments vs. Us Vector Equity | Fisher Investments vs. The Growth Equity | Fisher Investments vs. Artisan Select Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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