Correlation Between Guidemark Smallmid and John Hancock
Can any of the company-specific risk be diversified away by investing in both Guidemark Smallmid 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 Guidemark Smallmid and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidemark Smallmid Cap and John Hancock Funds, you can compare the effects of market volatilities on Guidemark Smallmid 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 Guidemark Smallmid with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Smallmid and John Hancock.
Diversification Opportunities for Guidemark Smallmid and John Hancock
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guidemark and John is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Smallmid Cap and John Hancock Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Funds and Guidemark Smallmid 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 Guidemark Smallmid Cap 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 Funds has no effect on the direction of Guidemark Smallmid i.e., Guidemark Smallmid and John Hancock go up and down completely randomly.
Pair Corralation between Guidemark Smallmid and John Hancock
Assuming the 90 days horizon Guidemark Smallmid is expected to generate 2.31 times less return on investment than John Hancock. In addition to that, Guidemark Smallmid is 3.21 times more volatile than John Hancock Funds. It trades about 0.02 of its total potential returns per unit of risk. John Hancock Funds is currently generating about 0.18 per unit of volatility. If you would invest 1,109 in John Hancock Funds on September 13, 2024 and sell it today you would earn a total of 11.00 from holding John Hancock Funds or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidemark Smallmid Cap vs. John Hancock Funds
Performance |
| Timeline |
| Guidemark Smallmid Cap |
| John Hancock Funds |
Guidemark Smallmid and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Smallmid and John Hancock
The main advantage of trading using opposite Guidemark Smallmid and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark Smallmid 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.| Guidemark Smallmid vs. General Money Market | Guidemark Smallmid vs. The Gabelli Money | Guidemark Smallmid vs. Putnam Money Market | Guidemark Smallmid vs. Schwab Treasury Money |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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