Correlation Between John Hancock and Hundredfold Select
Can any of the company-specific risk be diversified away by investing in both John Hancock and Hundredfold Select 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 Hundredfold Select 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 Hundredfold Select Alternative, you can compare the effects of market volatilities on John Hancock and Hundredfold Select 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 Hundredfold Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Hundredfold Select.
Diversification Opportunities for John Hancock and Hundredfold Select
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Hundredfold is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Hundredfold Select Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hundredfold Select 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 Hundredfold Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hundredfold Select has no effect on the direction of John Hancock i.e., John Hancock and Hundredfold Select go up and down completely randomly.
Pair Corralation between John Hancock and Hundredfold Select
Considering the 90-day investment horizon John Hancock Financial is expected to generate 3.05 times more return on investment than Hundredfold Select. However, John Hancock is 3.05 times more volatile than Hundredfold Select Alternative. It trades about 0.18 of its potential returns per unit of risk. Hundredfold Select Alternative is currently generating about 0.16 per unit of risk. If you would invest 3,785 in John Hancock Financial on September 12, 2024 and sell it today you would earn a total of 107.00 from holding John Hancock Financial or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Hundredfold Select Alternative
Performance |
| Timeline |
| John Hancock Financial |
| Hundredfold Select |
John Hancock and Hundredfold Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Hundredfold Select
The main advantage of trading using opposite John Hancock and Hundredfold Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Hundredfold Select 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 Hundredfold Select will offset losses from the drop in Hundredfold Select'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 |
| Hundredfold Select vs. SCOR PK | Hundredfold Select vs. Morningstar Unconstrained Allocation | Hundredfold Select vs. Via Renewables | Hundredfold Select vs. Bondbloxx ETF Trust |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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