Correlation Between John Hancock and Saat Servative
Can any of the company-specific risk be diversified away by investing in both John Hancock and Saat Servative 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 Saat Servative 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 Saat Servative Strategy, you can compare the effects of market volatilities on John Hancock and Saat Servative 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 Saat Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Saat Servative.
Diversification Opportunities for John Hancock and Saat Servative
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Saat is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy 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 Saat Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of John Hancock i.e., John Hancock and Saat Servative go up and down completely randomly.
Pair Corralation between John Hancock and Saat Servative
Assuming the 90 days horizon John Hancock Funds is expected to generate 1.21 times more return on investment than Saat Servative. However, John Hancock is 1.21 times more volatile than Saat Servative Strategy. It trades about 0.06 of its potential returns per unit of risk. Saat Servative Strategy is currently generating about 0.03 per unit of risk. 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 | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Funds vs. Saat Servative Strategy
Performance |
| Timeline |
| John Hancock Funds |
| Saat Servative Strategy |
John Hancock and Saat Servative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Saat Servative
The main advantage of trading using opposite John Hancock and Saat Servative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Saat Servative 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 Saat Servative will offset losses from the drop in Saat Servative'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 |
| Saat Servative vs. Pace High Yield | Saat Servative vs. Touchstone Premium Yield | Saat Servative vs. Versatile Bond Portfolio | Saat Servative vs. Franklin High Yield |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets |