Correlation Between Vest Large and John Hancock
Can any of the company-specific risk be diversified away by investing in both Vest Large 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 Vest Large and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vest Large Cap and John Hancock Strategic, you can compare the effects of market volatilities on Vest Large 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 Vest Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vest Large and John Hancock.
Diversification Opportunities for Vest Large and John Hancock
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vest and John is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vest Large Cap and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Vest Large 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 Vest Large 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 Strategic has no effect on the direction of Vest Large i.e., Vest Large and John Hancock go up and down completely randomly.
Pair Corralation between Vest Large and John Hancock
Assuming the 90 days horizon Vest Large is expected to generate 1.51 times less return on investment than John Hancock. In addition to that, Vest Large is 1.92 times more volatile than John Hancock Strategic. It trades about 0.04 of its total potential returns per unit of risk. John Hancock Strategic is currently generating about 0.12 per unit of volatility. If you would invest 2,668 in John Hancock Strategic on November 3, 2024 and sell it today you would earn a total of 82.00 from holding John Hancock Strategic or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vest Large Cap vs. John Hancock Strategic
Performance |
| Timeline |
| Vest Large Cap |
| John Hancock Strategic |
Vest Large and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vest Large and John Hancock
The main advantage of trading using opposite Vest Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vest Large 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.| Vest Large vs. James Balanced Golden | Vest Large vs. Vy Goldman Sachs | Vest Large vs. Invesco Gold Special | Vest Large vs. Deutsche Gold Precious |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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