Correlation Between Hood River and John Hancock
Can any of the company-specific risk be diversified away by investing in both Hood River 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 Hood River and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hood River New and John Hancock Funds, you can compare the effects of market volatilities on Hood River 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 Hood River with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hood River and John Hancock.
Diversification Opportunities for Hood River and John Hancock
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hood and John is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hood River New 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 Hood River 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 Hood River New 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 Hood River i.e., Hood River and John Hancock go up and down completely randomly.
Pair Corralation between Hood River and John Hancock
Assuming the 90 days horizon Hood River New is expected to generate 4.44 times more return on investment than John Hancock. However, Hood River is 4.44 times more volatile than John Hancock Funds. It trades about 0.47 of its potential returns per unit of risk. John Hancock Funds is currently generating about 0.34 per unit of risk. If you would invest 1,236 in Hood River New on September 4, 2024 and sell it today you would earn a total of 184.00 from holding Hood River New or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hood River New vs. John Hancock Funds
Performance |
| Timeline |
| Hood River New |
| John Hancock Funds |
Hood River and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hood River and John Hancock
The main advantage of trading using opposite Hood River and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hood River 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.| Hood River vs. Vanguard Total Stock | Hood River vs. Vanguard 500 Index | Hood River vs. Vanguard Total Stock | Hood River vs. Vanguard Total Stock |
| 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.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |