Correlation Between Cutler Equity and John Hancock
Can any of the company-specific risk be diversified away by investing in both Cutler Equity 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 Cutler Equity and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cutler Equity and John Hancock Focused, you can compare the effects of market volatilities on Cutler Equity 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 Cutler Equity with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cutler Equity and John Hancock.
Diversification Opportunities for Cutler Equity and John Hancock
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cutler and John is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cutler Equity and John Hancock Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Focused and Cutler Equity 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 Cutler Equity 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 Focused has no effect on the direction of Cutler Equity i.e., Cutler Equity and John Hancock go up and down completely randomly.
Pair Corralation between Cutler Equity and John Hancock
Assuming the 90 days horizon Cutler Equity is expected to generate 2.3 times more return on investment than John Hancock. However, Cutler Equity is 2.3 times more volatile than John Hancock Focused. It trades about 0.07 of its potential returns per unit of risk. John Hancock Focused is currently generating about 0.11 per unit of risk. If you would invest 2,295 in Cutler Equity on September 17, 2024 and sell it today you would earn a total of 570.00 from holding Cutler Equity or generate 24.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cutler Equity vs. John Hancock Focused
Performance |
| Timeline |
| Cutler Equity |
| John Hancock Focused |
Cutler Equity and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cutler Equity and John Hancock
The main advantage of trading using opposite Cutler Equity and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cutler Equity 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.| Cutler Equity vs. Upright Assets Allocation | Cutler Equity vs. Qs Large Cap | Cutler Equity vs. Falcon Focus Scv | Cutler Equity vs. Aqr Large Cap |
| John Hancock vs. Cutler Equity | John Hancock vs. Qs International Equity | John Hancock vs. Sarofim Equity | John Hancock vs. Locorr Dynamic Equity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |