Correlation Between John Hancock and Retirement Choices
Can any of the company-specific risk be diversified away by investing in both John Hancock and Retirement Choices 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 Retirement Choices 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 Retirement Choices At, you can compare the effects of market volatilities on John Hancock and Retirement Choices 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 Retirement Choices. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Retirement Choices.
Diversification Opportunities for John Hancock and Retirement Choices
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Retirement is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Retirement Choices At in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Choices 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 Retirement Choices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Choices has no effect on the direction of John Hancock i.e., John Hancock and Retirement Choices go up and down completely randomly.
Pair Corralation between John Hancock and Retirement Choices
If you would invest 2,594 in John Hancock Financial on September 12, 2024 and sell it today you would earn a total of 1,298 from holding John Hancock Financial or generate 50.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.81% |
| Values | Daily Returns |
John Hancock Financial vs. Retirement Choices At
Performance |
| Timeline |
| John Hancock Financial |
| Retirement Choices |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Retirement Choices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Retirement Choices
The main advantage of trading using opposite John Hancock and Retirement Choices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Retirement Choices 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 Retirement Choices will offset losses from the drop in Retirement Choices' 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |