Correlation Between John Hancock and Origin Emerging
Can any of the company-specific risk be diversified away by investing in both John Hancock and Origin Emerging 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 Origin Emerging 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 Origin Emerging Markets, you can compare the effects of market volatilities on John Hancock and Origin Emerging 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 Origin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Origin Emerging.
Diversification Opportunities for John Hancock and Origin Emerging
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Origin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Origin Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Emerging Markets 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 Origin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Emerging Markets has no effect on the direction of John Hancock i.e., John Hancock and Origin Emerging go up and down completely randomly.
Pair Corralation between John Hancock and Origin Emerging
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Origin Emerging. In addition to that, John Hancock is 3.86 times more volatile than Origin Emerging Markets. It trades about -0.27 of its total potential returns per unit of risk. Origin Emerging Markets is currently generating about -0.12 per unit of volatility. If you would invest 1,056 in Origin Emerging Markets on October 8, 2024 and sell it today you would lose (10.00) from holding Origin Emerging Markets or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
John Hancock Financial vs. Origin Emerging Markets
Performance |
| Timeline |
| John Hancock Financial |
| Origin Emerging Markets |
John Hancock and Origin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Origin Emerging
The main advantage of trading using opposite John Hancock and Origin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Origin Emerging 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 Origin Emerging will offset losses from the drop in Origin Emerging'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 |
| Origin Emerging vs. Mutual Of America | Origin Emerging vs. Fidelity Small Cap | Origin Emerging vs. Omni Small Cap Value | Origin Emerging vs. American Century Etf |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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