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 Emerging and John Hancock Enduring, 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
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between THE and John is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging and John Hancock Enduring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Enduring 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 Emerging 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 Enduring 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 Emerging is expected to under-perform the John Hancock. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Hartford Emerging is 1.23 times less risky than John Hancock. The mutual fund trades about -0.01 of its potential returns per unit of risk. The John Hancock Enduring is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,403 in John Hancock Enduring on September 4, 2024 and sell it today you would earn a total of 136.00 from holding John Hancock Enduring or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.82% |
| Values | Daily Returns |
The Hartford Emerging vs. John Hancock Enduring
Performance |
| Timeline |
| Hartford Emerging |
| John Hancock Enduring |
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. 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |