Correlation Between Fidelity Series and John Hancock
Can any of the company-specific risk be diversified away by investing in both Fidelity Series 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 Series 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 Series 1000 and John Hancock Investment, you can compare the effects of market volatilities on Fidelity Series 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 Series with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and John Hancock.
Diversification Opportunities for Fidelity Series and John Hancock
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and John is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series 1000 and John Hancock Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Investment and Fidelity Series 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 Series 1000 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 Investment has no effect on the direction of Fidelity Series i.e., Fidelity Series and John Hancock go up and down completely randomly.
Pair Corralation between Fidelity Series and John Hancock
Assuming the 90 days horizon Fidelity Series is expected to generate 1.1 times less return on investment than John Hancock. But when comparing it to its historical volatility, Fidelity Series 1000 is 1.09 times less risky than John Hancock. It trades about 0.19 of its potential returns per unit of risk. John Hancock Investment is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 7,580 in John Hancock Investment on September 2, 2024 and sell it today you would earn a total of 672.00 from holding John Hancock Investment or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series 1000 vs. John Hancock Investment
Performance |
| Timeline |
| Fidelity Series 1000 |
| John Hancock Investment |
Fidelity Series and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and John Hancock
The main advantage of trading using opposite Fidelity Series and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series 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 Series vs. Thrivent Income Fund | Fidelity Series vs. Touchstone Premium Yield | Fidelity Series vs. Artisan High Income | Fidelity Series vs. T Rowe Price |
| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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