Correlation Between John Hancock and Banking Fund
Can any of the company-specific risk be diversified away by investing in both John Hancock and Banking Fund 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 Banking Fund 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 Banking Fund Class, you can compare the effects of market volatilities on John Hancock and Banking Fund 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 Banking Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Banking Fund.
Diversification Opportunities for John Hancock and Banking Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Banking is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Banking Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banking Fund Class 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 Banking Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banking Fund Class has no effect on the direction of John Hancock i.e., John Hancock and Banking Fund go up and down completely randomly.
Pair Corralation between John Hancock and Banking Fund
If you would invest 3,321 in John Hancock Financial on November 2, 2024 and sell it today you would earn a total of 447.00 from holding John Hancock Financial or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
John Hancock Financial vs. Banking Fund Class
Performance |
| Timeline |
| John Hancock Financial |
| Banking Fund Class |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
John Hancock and Banking Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Banking Fund
The main advantage of trading using opposite John Hancock and Banking Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Banking Fund 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 Banking Fund will offset losses from the drop in Banking Fund'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 |
| Banking Fund vs. The Growth Equity | Banking Fund vs. Aqr Long Short Equity | Banking Fund vs. Us Vector Equity | Banking Fund vs. Aqr Equity Market |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |