Correlation Between Stadion Tactical and John Hancock
Can any of the company-specific risk be diversified away by investing in both Stadion Tactical 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 Stadion Tactical and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stadion Tactical Growth and John Hancock Government, you can compare the effects of market volatilities on Stadion Tactical 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 Stadion Tactical with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stadion Tactical and John Hancock.
Diversification Opportunities for Stadion Tactical and John Hancock
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stadion and John is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Stadion Tactical Growth and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Stadion Tactical 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 Stadion Tactical Growth 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 Government has no effect on the direction of Stadion Tactical i.e., Stadion Tactical and John Hancock go up and down completely randomly.
Pair Corralation between Stadion Tactical and John Hancock
Assuming the 90 days horizon Stadion Tactical Growth is expected to generate 2.04 times more return on investment than John Hancock. However, Stadion Tactical is 2.04 times more volatile than John Hancock Government. It trades about 0.17 of its potential returns per unit of risk. John Hancock Government is currently generating about 0.08 per unit of risk. If you would invest 1,464 in Stadion Tactical Growth on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Stadion Tactical Growth or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stadion Tactical Growth vs. John Hancock Government
Performance |
| Timeline |
| Stadion Tactical Growth |
| John Hancock Government |
Stadion Tactical and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stadion Tactical and John Hancock
The main advantage of trading using opposite Stadion Tactical and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stadion Tactical 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.| Stadion Tactical vs. Fidelity Series Government | Stadion Tactical vs. Dws Government Money | Stadion Tactical vs. Us Government Securities | Stadion Tactical vs. Prudential Government Income |
| John Hancock vs. International Investors Gold | John Hancock vs. Franklin Gold Precious | John Hancock vs. Short Precious Metals | John Hancock vs. Precious Metals And |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |