Correlation Between John Hancock and Invesco Peak
Can any of the company-specific risk be diversified away by investing in both John Hancock and Invesco Peak 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 John Hancock and Invesco Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Funds and Invesco Peak Retirement, you can compare the effects of market volatilities on John Hancock and Invesco Peak 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 John Hancock with a short position of Invesco Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Invesco Peak.
Diversification Opportunities for John Hancock and Invesco Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Invesco Peak Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Peak Retirement and John Hancock 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 John Hancock Funds are associated (or correlated) with Invesco Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Peak Retirement has no effect on the direction of John Hancock i.e., John Hancock and Invesco Peak go up and down completely randomly.
Pair Corralation between John Hancock and Invesco Peak
If you would invest 1,116 in John Hancock Funds on September 12, 2024 and sell it today you would earn a total of 4.00 from holding John Hancock Funds or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
John Hancock Funds vs. Invesco Peak Retirement
Performance |
| Timeline |
| John Hancock Funds |
| Invesco Peak Retirement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Invesco Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Invesco Peak
The main advantage of trading using opposite John Hancock and Invesco Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Invesco Peak 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 Invesco Peak will offset losses from the drop in Invesco Peak's long position.| John Hancock vs. Champlain Small | John Hancock vs. Guidemark Smallmid Cap | John Hancock vs. Kinetics Small Cap | John Hancock vs. Mutual Of America |
| Invesco Peak vs. Goldman Sachs Financial | Invesco Peak vs. Transamerica Financial Life | Invesco Peak vs. Royce Global Financial | Invesco Peak vs. Mesirow Financial Small |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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