Correlation Between Cardinal Small and John Hancock
Can any of the company-specific risk be diversified away by investing in both Cardinal Small and John Hancock 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 Cardinal Small and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Small Cap and John Hancock Emerging, you can compare the effects of market volatilities on Cardinal Small and John Hancock 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 Cardinal Small with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Small and John Hancock.
Diversification Opportunities for Cardinal Small and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardinal and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Small Cap and John Hancock Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Emerging and Cardinal Small 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 Cardinal Small Cap are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Emerging has no effect on the direction of Cardinal Small i.e., Cardinal Small and John Hancock go up and down completely randomly.
Pair Corralation between Cardinal Small and John Hancock
Assuming the 90 days horizon Cardinal Small Cap is expected to generate 1.1 times more return on investment than John Hancock. However, Cardinal Small is 1.1 times more volatile than John Hancock Emerging. It trades about 0.01 of its potential returns per unit of risk. John Hancock Emerging is currently generating about 0.01 per unit of risk. If you would invest 1,403 in Cardinal Small Cap on October 25, 2024 and sell it today you would earn a total of 41.00 from holding Cardinal Small Cap or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Small Cap vs. John Hancock Emerging
Performance |
| Timeline |
| Cardinal Small Cap |
| John Hancock Emerging |
Cardinal Small and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Small and John Hancock
The main advantage of trading using opposite Cardinal Small and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Small position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Cardinal Small vs. Calvert Moderate Allocation | Cardinal Small vs. Great West Moderately Aggressive | Cardinal Small vs. Blackrock Moderate Prepared | Cardinal Small vs. Hartford Moderate Allocation |
| John Hancock vs. Tax Managed Large Cap | John Hancock vs. Rational Dividend Capture | John Hancock vs. Furyax | John Hancock vs. Fuhkbx |
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 CEOs Directory module to screen CEOs from public companies around the world.
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