Correlation Between John Hancock and Ivy Asset
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ivy Asset 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 Ivy Asset 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 Ivy Asset Strategy, you can compare the effects of market volatilities on John Hancock and Ivy Asset 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 Ivy Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ivy Asset.
Diversification Opportunities for John Hancock and Ivy Asset
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Ivy is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Ivy Asset Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Asset Strategy 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 Ivy Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Asset Strategy has no effect on the direction of John Hancock i.e., John Hancock and Ivy Asset go up and down completely randomly.
Pair Corralation between John Hancock and Ivy Asset
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.63 times more return on investment than Ivy Asset. However, John Hancock is 1.63 times more volatile than Ivy Asset Strategy. It trades about 0.04 of its potential returns per unit of risk. Ivy Asset Strategy is currently generating about 0.05 per unit of risk. If you would invest 2,893 in John Hancock Financial on August 29, 2024 and sell it today you would earn a total of 1,035 from holding John Hancock Financial or generate 35.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Ivy Asset Strategy
Performance |
| Timeline |
| John Hancock Financial |
| Ivy Asset Strategy |
John Hancock and Ivy Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ivy Asset
The main advantage of trading using opposite John Hancock and Ivy Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ivy Asset 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 Ivy Asset will offset losses from the drop in Ivy Asset's long position.| John Hancock vs. Gabelli Global Small | John Hancock vs. MFS Investment Grade | John Hancock vs. Eaton Vance National | John Hancock vs. GAMCO Natural Resources |
| Ivy Asset vs. Lord Abbett Health | Ivy Asset vs. Delaware Healthcare Fund | Ivy Asset vs. Allianzgi Health Sciences | Ivy Asset vs. Eventide Healthcare Life |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |