Correlation Between John Hancock and Tiaa-cref International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Tiaa-cref International 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 Tiaa-cref International 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 Tiaa Cref International Equity, you can compare the effects of market volatilities on John Hancock and Tiaa-cref International 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 Tiaa-cref International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Tiaa-cref International.
Diversification Opportunities for John Hancock and Tiaa-cref International
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Tiaa-cref is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International 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 Tiaa-cref International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref International has no effect on the direction of John Hancock i.e., John Hancock and Tiaa-cref International go up and down completely randomly.
Pair Corralation between John Hancock and Tiaa-cref International
Considering the 90-day investment horizon John Hancock Financial is expected to generate 2.44 times more return on investment than Tiaa-cref International. However, John Hancock is 2.44 times more volatile than Tiaa Cref International Equity. It trades about 0.35 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about -0.01 per unit of risk. If you would invest 3,415 in John Hancock Financial on September 1, 2024 and sell it today you would earn a total of 525.00 from holding John Hancock Financial or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Financial vs. Tiaa Cref International Equity
Performance |
| Timeline |
| John Hancock Financial |
| Tiaa Cref International |
John Hancock and Tiaa-cref International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Tiaa-cref International
The main advantage of trading using opposite John Hancock and Tiaa-cref International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Tiaa-cref International 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 Tiaa-cref International will offset losses from the drop in Tiaa-cref International'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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