Correlation Between Elfun Government and John Hancock
Can any of the company-specific risk be diversified away by investing in both Elfun Government 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 Elfun Government and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and John Hancock Money, you can compare the effects of market volatilities on Elfun Government 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 Elfun Government with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and John Hancock.
Diversification Opportunities for Elfun Government and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Elfun Government 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 Elfun Government Money 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 Money has no effect on the direction of Elfun Government i.e., Elfun Government and John Hancock go up and down completely randomly.
Pair Corralation between Elfun Government and John Hancock
If you would invest 100.00 in John Hancock Money on October 25, 2024 and sell it today you would earn a total of 0.00 from holding John Hancock Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
Elfun Government Money vs. John Hancock Money
Performance |
| Timeline |
| Elfun Government Money |
| John Hancock Money |
Elfun Government and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and John Hancock
The main advantage of trading using opposite Elfun Government and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government 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.| Elfun Government vs. Principal Lifetime Hybrid | Elfun Government vs. Qs Large Cap | Elfun Government vs. T Rowe Price | Elfun Government vs. T Rowe Price |
| John Hancock vs. Franklin Servative Allocation | John Hancock vs. Tax Free Conservative Income | John Hancock vs. Voya Retirement Servative | John Hancock vs. Goldman Sachs Short Term |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |