Correlation Between The Hartford and John Hancock
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 The Hartford and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford International and John Hancock Disciplined, you can compare the effects of market volatilities on The Hartford 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 The Hartford with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and John Hancock.
Diversification Opportunities for The Hartford and John Hancock
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between The and John is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford International and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and The Hartford 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 The Hartford International 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 Disciplined has no effect on the direction of The Hartford i.e., The Hartford and John Hancock go up and down completely randomly.
Pair Corralation between The Hartford and John Hancock
Assuming the 90 days horizon The Hartford International is expected to under-perform the John Hancock. In addition to that, The Hartford is 1.05 times more volatile than John Hancock Disciplined. It trades about -0.24 of its total potential returns per unit of risk. John Hancock Disciplined is currently generating about -0.21 per unit of volatility. If you would invest 2,328 in John Hancock Disciplined on January 8, 2025 and sell it today you would lose (195.00) from holding John Hancock Disciplined or give up 8.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hartford International vs. John Hancock Disciplined
Performance |
| Timeline |
| Hartford Interna |
| John Hancock Disciplined |
The Hartford and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and John Hancock
The main advantage of trading using opposite The Hartford and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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.| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
| John Hancock vs. Ashmore Emerging Markets | John Hancock vs. Barings Emerging Markets | John Hancock vs. Rbc Emerging Markets | John Hancock vs. Doubleline Emerging Markets |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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