Correlation Between John Hancock and Locorr Market
Can any of the company-specific risk be diversified away by investing in both John Hancock and Locorr Market 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 Locorr Market 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 Locorr Market Trend, you can compare the effects of market volatilities on John Hancock and Locorr Market 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 Locorr Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Locorr Market.
Diversification Opportunities for John Hancock and Locorr Market
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between John and Locorr is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Locorr Market Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Market Trend 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 Locorr Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Market Trend has no effect on the direction of John Hancock i.e., John Hancock and Locorr Market go up and down completely randomly.
Pair Corralation between John Hancock and Locorr Market
Considering the 90-day investment horizon John Hancock Financial is expected to generate 0.68 times more return on investment than Locorr Market. However, John Hancock Financial is 1.48 times less risky than Locorr Market. It trades about 0.18 of its potential returns per unit of risk. Locorr Market Trend is currently generating about -0.11 per unit of risk. If you would invest 3,785 in John Hancock Financial on September 12, 2024 and sell it today you would earn a total of 107.00 from holding John Hancock Financial or generate 2.83% 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. Locorr Market Trend
Performance |
| Timeline |
| John Hancock Financial |
| Locorr Market Trend |
John Hancock and Locorr Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Locorr Market
The main advantage of trading using opposite John Hancock and Locorr Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Locorr Market 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 Locorr Market will offset losses from the drop in Locorr Market'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 |
| Locorr Market vs. Locorr Market Trend | Locorr Market vs. Locorr Hedged Core | Locorr Market vs. Locorr Hedged Core | Locorr Market vs. Locorr Spectrum Income |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |