Correlation Between Fidelity Advisor and John Hancock
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor 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 Fidelity Advisor and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Real and John Hancock Variable, you can compare the effects of market volatilities on Fidelity Advisor 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 Fidelity Advisor with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and John Hancock.
Diversification Opportunities for Fidelity Advisor and John Hancock
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and John is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Real and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Fidelity Advisor 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 Fidelity Advisor Real 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 Variable has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and John Hancock go up and down completely randomly.
Pair Corralation between Fidelity Advisor and John Hancock
Assuming the 90 days horizon Fidelity Advisor Real is expected to generate 1.06 times more return on investment than John Hancock. However, Fidelity Advisor is 1.06 times more volatile than John Hancock Variable. It trades about 0.04 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.0 per unit of risk. If you would invest 1,685 in Fidelity Advisor Real on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Fidelity Advisor Real or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Real vs. John Hancock Variable
Performance |
| Timeline |
| Fidelity Advisor Real |
| John Hancock Variable |
Fidelity Advisor and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and John Hancock
The main advantage of trading using opposite Fidelity Advisor and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor 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.| Fidelity Advisor vs. Allianzgi Technology Fund | Fidelity Advisor vs. Goldman Sachs Technology | Fidelity Advisor vs. Fidelity Advisor Technology | Fidelity Advisor vs. Technology Ultrasector Profund |
| John Hancock vs. Manning Napier Diversified | John Hancock vs. Diversified Bond Fund | John Hancock vs. Guidepath Conservative Income | John Hancock vs. Prudential Core Conservative |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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