Correlation Between John Hancock and John Hancock
Can any of the company-specific risk be diversified away by investing in both John Hancock and John Hancock 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 John Hancock 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 John Hancock Global, you can compare the effects of market volatilities on John Hancock and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and John Hancock.
Diversification Opportunities for John Hancock and John Hancock
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and John is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Global has no effect on the direction of John Hancock i.e., John Hancock and John Hancock go up and down completely randomly.
Pair Corralation between John Hancock and John Hancock
Considering the 90-day investment horizon John Hancock Financial is expected to generate 2.99 times more return on investment than John Hancock. However, John Hancock is 2.99 times more volatile than John Hancock Global. It trades about 0.04 of its potential returns per unit of risk. John Hancock Global is currently generating about 0.09 per unit of risk. If you would invest 2,859 in John Hancock Financial on September 13, 2024 and sell it today you would earn a total of 996.00 from holding John Hancock Financial or generate 34.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. John Hancock Global
Performance |
| Timeline |
| John Hancock Financial |
| John Hancock Global |
John Hancock and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and John Hancock
The main advantage of trading using opposite John Hancock and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock'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 |
| John Hancock vs. Royce Global Financial | John Hancock vs. John Hancock Financial | John Hancock vs. Blackrock Financial Institutions | John Hancock vs. Mesirow Financial Small |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |