Correlation Between John Hancock and Simt Real
Can any of the company-specific risk be diversified away by investing in both John Hancock and Simt Real 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 Real 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 Real Return, you can compare the effects of market volatilities on John Hancock and Simt Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Simt Real.
Diversification Opportunities for John Hancock and Simt Real
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Simt is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Simt Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Return 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Return has no effect on the direction of John Hancock i.e., John Hancock and Simt Real go up and down completely randomly.
Pair Corralation between John Hancock and Simt Real
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Simt Real. In addition to that, John Hancock is 11.66 times more volatile than Simt Real Return. It trades about -0.06 of its total potential returns per unit of risk. Simt Real Return is currently generating about 0.36 per unit of volatility. If you would invest 960.00 in Simt Real Return on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Simt Real Return or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Simt Real Return
Performance |
| Timeline |
| John Hancock Financial |
| Simt Real Return |
John Hancock and Simt Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Simt Real
The main advantage of trading using opposite John Hancock and Simt Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Simt Real 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 Real will offset losses from the drop in Simt Real'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 Real vs. Simt Multi Asset Accumulation | Simt Real vs. Saat Market Growth | Simt Real vs. Simt Small Cap | Simt Real vs. Siit Screened World |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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