Correlation Between John Hancock and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both John Hancock and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on John Hancock and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Simt Multi-asset.
Diversification Opportunities for John Hancock and Simt Multi-asset
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between John and Simt is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of John Hancock i.e., John Hancock and Simt Multi-asset go up and down completely randomly.
Pair Corralation between John Hancock and Simt Multi-asset
Considering the 90-day investment horizon John Hancock Financial is expected to generate 7.25 times more return on investment than Simt Multi-asset. However, John Hancock is 7.25 times more volatile than Simt Multi Asset Inflation. It trades about 0.21 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.42 per unit of risk. If you would invest 3,532 in John Hancock Financial on November 3, 2024 and sell it today you would earn a total of 219.00 from holding John Hancock Financial or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| John Hancock Financial |
| Simt Multi Asset |
John Hancock and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Simt Multi-asset
The main advantage of trading using opposite John Hancock and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset'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 |
| Simt Multi-asset vs. Doubleline Total Return | Simt Multi-asset vs. Siit High Yield | Simt Multi-asset vs. Angel Oak Financial | Simt Multi-asset vs. Touchstone Ultra Short |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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