Correlation Between Gabelli Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Gabelli Global 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 Gabelli Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Financial and John Hancock Financial, you can compare the effects of market volatilities on Gabelli Global 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 Gabelli Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and John Hancock.
Diversification Opportunities for Gabelli Global and John Hancock
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and John is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Gabelli Global 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 Gabelli Global Financial 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 Financial has no effect on the direction of Gabelli Global i.e., Gabelli Global and John Hancock go up and down completely randomly.
Pair Corralation between Gabelli Global and John Hancock
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 0.51 times more return on investment than John Hancock. However, Gabelli Global Financial is 1.96 times less risky than John Hancock. It trades about 0.11 of its potential returns per unit of risk. John Hancock Financial is currently generating about 0.04 per unit of risk. If you would invest 1,005 in Gabelli Global Financial on August 27, 2024 and sell it today you would earn a total of 641.00 from holding Gabelli Global Financial or generate 63.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. John Hancock Financial
Performance |
| Timeline |
| Gabelli Global Financial |
| John Hancock Financial |
Gabelli Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and John Hancock
The main advantage of trading using opposite Gabelli Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global 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.| Gabelli Global vs. Gabelli Esg Fund | Gabelli Global vs. The Gabelli Equity | Gabelli Global vs. Gamco International Growth | Gabelli Global vs. Enterprise Mergers And |
| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |