Correlation Between John Hancock and Ontrack Core
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ontrack Core 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 Ontrack Core 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 Ontrack E Fund, you can compare the effects of market volatilities on John Hancock and Ontrack Core 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 Ontrack Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ontrack Core.
Diversification Opportunities for John Hancock and Ontrack Core
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Ontrack is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Ontrack E Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrack E Fund 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 Ontrack Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrack E Fund has no effect on the direction of John Hancock i.e., John Hancock and Ontrack Core go up and down completely randomly.
Pair Corralation between John Hancock and Ontrack Core
Considering the 90-day investment horizon John Hancock Financial is expected to generate 10.1 times more return on investment than Ontrack Core. However, John Hancock is 10.1 times more volatile than Ontrack E Fund. It trades about 0.35 of its potential returns per unit of risk. Ontrack E Fund is currently generating about 0.05 per unit of risk. If you would invest 3,390 in John Hancock Financial on August 30, 2024 and sell it today you would earn a total of 538.00 from holding John Hancock Financial or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Ontrack E Fund
Performance |
| Timeline |
| John Hancock Financial |
| Ontrack E Fund |
John Hancock and Ontrack Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ontrack Core
The main advantage of trading using opposite John Hancock and Ontrack Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ontrack Core 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 Ontrack Core will offset losses from the drop in Ontrack Core's long position.| John Hancock vs. Gabelli Global Small | John Hancock vs. MFS Investment Grade | John Hancock vs. Eaton Vance National | John Hancock vs. GAMCO Natural Resources |
| Ontrack Core vs. Ontrack E Fund | Ontrack Core vs. Prudential Jennison International | Ontrack Core vs. Fidelity New Markets | Ontrack Core vs. Ohio Variable College |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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