Correlation Between Fidelity Sai and John Hancock
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai 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 Sai 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 Sai Convertible and John Hancock Income, you can compare the effects of market volatilities on Fidelity Sai 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 Sai with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and John Hancock.
Diversification Opportunities for Fidelity Sai and John Hancock
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and John is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Fidelity Sai 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 Sai Convertible 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 Income has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and John Hancock go up and down completely randomly.
Pair Corralation between Fidelity Sai and John Hancock
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.16 times less return on investment than John Hancock. But when comparing it to its historical volatility, Fidelity Sai Convertible is 1.15 times less risky than John Hancock. It trades about 0.31 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 586.00 in John Hancock Income on September 13, 2024 and sell it today you would earn a total of 5.00 from holding John Hancock Income or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. John Hancock Income
Performance |
| Timeline |
| Fidelity Sai Convertible |
| John Hancock Income |
Fidelity Sai and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and John Hancock
The main advantage of trading using opposite Fidelity Sai and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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 Sai vs. Easterly Snow Longshort | Fidelity Sai vs. Rbc Short Duration | Fidelity Sai vs. Virtus Multi Sector Short | Fidelity Sai vs. Touchstone Ultra Short |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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