Correlation Between Gurtin California and John Hancock
Can any of the company-specific risk be diversified away by investing in both Gurtin California 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 Gurtin California and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurtin California Muni and John Hancock Strategic, you can compare the effects of market volatilities on Gurtin California 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 Gurtin California with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurtin California and John Hancock.
Diversification Opportunities for Gurtin California and John Hancock
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gurtin and John is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gurtin California Muni and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Gurtin California 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 Gurtin California Muni 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 Strategic has no effect on the direction of Gurtin California i.e., Gurtin California and John Hancock go up and down completely randomly.
Pair Corralation between Gurtin California and John Hancock
Assuming the 90 days horizon Gurtin California is expected to generate 6.45 times less return on investment than John Hancock. But when comparing it to its historical volatility, Gurtin California Muni is 9.65 times less risky than John Hancock. It trades about 0.1 of its potential returns per unit of risk. John Hancock Strategic is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,755 in John Hancock Strategic on October 25, 2024 and sell it today you would earn a total of 35.00 from holding John Hancock Strategic or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Gurtin California Muni vs. John Hancock Strategic
Performance |
| Timeline |
| Gurtin California Muni |
| John Hancock Strategic |
Gurtin California and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurtin California and John Hancock
The main advantage of trading using opposite Gurtin California and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurtin California 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.| Gurtin California vs. Aqr Global Macro | Gurtin California vs. Asg Global Alternatives | Gurtin California vs. Wisdomtree Siegel Global | Gurtin California vs. Dws Global Macro |
| John Hancock vs. Nasdaq 100 Index Fund | John Hancock vs. Qs Small Capitalization | John Hancock vs. Growth Fund Of | John Hancock vs. Rbb Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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