Correlation Between John Hancock and Kinetics Multi
Can any of the company-specific risk be diversified away by investing in both John Hancock and Kinetics Multi 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 Kinetics Multi 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 Kinetics Multi Disciplinary Income, you can compare the effects of market volatilities on John Hancock and Kinetics Multi 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 Kinetics Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Kinetics Multi.
Diversification Opportunities for John Hancock and Kinetics Multi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Kinetics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Kinetics Multi Disciplinary In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Multi Disci 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 Kinetics Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Multi Disci has no effect on the direction of John Hancock i.e., John Hancock and Kinetics Multi go up and down completely randomly.
Pair Corralation between John Hancock and Kinetics Multi
If you would invest 2,807 in John Hancock Financial on September 12, 2024 and sell it today you would earn a total of 1,048 from holding John Hancock Financial or generate 37.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
John Hancock Financial vs. Kinetics Multi Disciplinary In
Performance |
| Timeline |
| John Hancock Financial |
| Kinetics Multi Disci |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Kinetics Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Kinetics Multi
The main advantage of trading using opposite John Hancock and Kinetics Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Kinetics Multi 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 Kinetics Multi will offset losses from the drop in Kinetics Multi'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 |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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