Correlation Between John Hancock and Morningstar Aggressive
Can any of the company-specific risk be diversified away by investing in both John Hancock and Morningstar Aggressive 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 Morningstar Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Mid and Morningstar Aggressive Growth, you can compare the effects of market volatilities on John Hancock and Morningstar Aggressive 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 Morningstar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Morningstar Aggressive.
Diversification Opportunities for John Hancock and Morningstar Aggressive
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Morningstar is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Mid and Morningstar Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar Aggressive 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 Mid are associated (or correlated) with Morningstar Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar Aggressive has no effect on the direction of John Hancock i.e., John Hancock and Morningstar Aggressive go up and down completely randomly.
Pair Corralation between John Hancock and Morningstar Aggressive
Assuming the 90 days horizon John Hancock Mid is expected to generate 1.55 times more return on investment than Morningstar Aggressive. However, John Hancock is 1.55 times more volatile than Morningstar Aggressive Growth. It trades about 0.14 of its potential returns per unit of risk. Morningstar Aggressive Growth is currently generating about 0.07 per unit of risk. If you would invest 1,595 in John Hancock Mid on September 13, 2024 and sell it today you would earn a total of 361.00 from holding John Hancock Mid or generate 22.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
John Hancock Mid vs. Morningstar Aggressive Growth
Performance |
| Timeline |
| John Hancock Mid |
| Morningstar Aggressive |
John Hancock and Morningstar Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Morningstar Aggressive
The main advantage of trading using opposite John Hancock and Morningstar Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Morningstar Aggressive 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 Morningstar Aggressive will offset losses from the drop in Morningstar Aggressive's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Morningstar Aggressive vs. Scout Small Cap | Morningstar Aggressive vs. Guidemark Smallmid Cap | Morningstar Aggressive vs. Siit Small Mid | Morningstar Aggressive vs. Small Pany Growth |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |