Correlation Between John Hancock and Oakmark International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Oakmark International 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 Oakmark International 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 Oakmark International Fund, you can compare the effects of market volatilities on John Hancock and Oakmark International 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 Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Oakmark International.
Diversification Opportunities for John Hancock and Oakmark International
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between John and Oakmark is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Oakmark International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of John Hancock i.e., John Hancock and Oakmark International go up and down completely randomly.
Pair Corralation between John Hancock and Oakmark International
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.49 times more return on investment than Oakmark International. However, John Hancock is 1.49 times more volatile than Oakmark International Fund. It trades about 0.15 of its potential returns per unit of risk. Oakmark International Fund is currently generating about 0.07 per unit of risk. If you would invest 2,868 in John Hancock Financial on November 3, 2024 and sell it today you would earn a total of 883.00 from holding John Hancock Financial or generate 30.79% 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. Oakmark International Fund
Performance |
| Timeline |
| John Hancock Financial |
| Oakmark International |
John Hancock and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Oakmark International
The main advantage of trading using opposite John Hancock and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Oakmark International 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 Oakmark International will offset losses from the drop in Oakmark International'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 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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