Correlation Between Goldman Sachs and John Hancock
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Government and John Hancock Government, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and John Hancock.
Diversification Opportunities for Goldman Sachs and John Hancock
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GOLDMAN and John is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Government and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Goldman Sachs 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 Goldman Sachs Government 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 Government has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and John Hancock go up and down completely randomly.
Pair Corralation between Goldman Sachs and John Hancock
Assuming the 90 days horizon Goldman Sachs Government is expected to generate 0.98 times more return on investment than John Hancock. However, Goldman Sachs Government is 1.02 times less risky than John Hancock. It trades about 0.05 of its potential returns per unit of risk. John Hancock Government is currently generating about 0.04 per unit of risk. If you would invest 1,248 in Goldman Sachs Government on September 2, 2024 and sell it today you would earn a total of 52.00 from holding Goldman Sachs Government or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Government vs. John Hancock Government
Performance |
| Timeline |
| Goldman Sachs Government |
| John Hancock Government |
Goldman Sachs and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and John Hancock
The main advantage of trading using opposite Goldman Sachs and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Oklahoma College Savings | Goldman Sachs vs. Ab Bond Inflation | Goldman Sachs vs. Guidepath Managed Futures | Goldman Sachs vs. Ab Bond Inflation |
| John Hancock vs. Volumetric Fund Volumetric | John Hancock vs. Rbc Microcap Value | John Hancock vs. T Rowe Price | John Hancock vs. Falcon Focus Scv |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |