Correlation Between John Hancock and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both John Hancock and Pgim Jennison 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 Pgim Jennison 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 Pgim Jennison Technology, you can compare the effects of market volatilities on John Hancock and Pgim Jennison 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 Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Pgim Jennison.
Diversification Opportunities for John Hancock and Pgim Jennison
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Pgim is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology 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 Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Technology has no effect on the direction of John Hancock i.e., John Hancock and Pgim Jennison go up and down completely randomly.
Pair Corralation between John Hancock and Pgim Jennison
Considering the 90-day investment horizon John Hancock is expected to generate 2.9 times less return on investment than Pgim Jennison. In addition to that, John Hancock is 1.22 times more volatile than Pgim Jennison Technology. It trades about 0.03 of its total potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.1 per unit of volatility. If you would invest 1,236 in Pgim Jennison Technology on October 9, 2024 and sell it today you would earn a total of 1,362 from holding Pgim Jennison Technology or generate 110.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Pgim Jennison Technology
Performance |
| Timeline |
| John Hancock Financial |
| Pgim Jennison Technology |
John Hancock and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Pgim Jennison
The main advantage of trading using opposite John Hancock and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison'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 |
| Pgim Jennison vs. Baron Health Care | Pgim Jennison vs. Alphacentric Lifesci Healthcare | Pgim Jennison vs. Health Care Ultrasector | Pgim Jennison vs. Baillie Gifford Health |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |