Correlation Between John Hancock and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both John Hancock and Oppenheimer Intl 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 Oppenheimer Intl 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 Oppenheimer Intl Grwth, you can compare the effects of market volatilities on John Hancock and Oppenheimer Intl 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 Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Oppenheimer Intl.
Diversification Opportunities for John Hancock and Oppenheimer Intl
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Oppenheimer is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Oppenheimer Intl Grwth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Grwth 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 Oppenheimer Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Intl Grwth has no effect on the direction of John Hancock i.e., John Hancock and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between John Hancock and Oppenheimer Intl
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.71 times more return on investment than Oppenheimer Intl. However, John Hancock is 1.71 times more volatile than Oppenheimer Intl Grwth. It trades about 0.04 of its potential returns per unit of risk. Oppenheimer Intl Grwth is currently generating about 0.01 per unit of risk. If you would invest 2,815 in John Hancock Financial on September 14, 2024 and sell it today you would earn a total of 947.00 from holding John Hancock Financial or generate 33.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
John Hancock Financial vs. Oppenheimer Intl Grwth
Performance |
| Timeline |
| John Hancock Financial |
| Oppenheimer Intl Grwth |
John Hancock and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Oppenheimer Intl
The main advantage of trading using opposite John Hancock and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Oppenheimer Intl 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 Oppenheimer Intl will offset losses from the drop in Oppenheimer Intl'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 |
| Oppenheimer Intl vs. John Hancock Financial | Oppenheimer Intl vs. Blackrock Financial Institutions | Oppenheimer Intl vs. Icon Financial Fund | Oppenheimer Intl vs. Transamerica Financial Life |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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