Correlation Between John Hancock and Us Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Us Global 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 Us Global 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 Us Global Leaders, you can compare the effects of market volatilities on John Hancock and Us Global 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 Us Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Us Global.
Diversification Opportunities for John Hancock and Us Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and USLIX is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Mid and Us Global Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Global Leaders 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 Us Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Global Leaders has no effect on the direction of John Hancock i.e., John Hancock and Us Global go up and down completely randomly.
Pair Corralation between John Hancock and Us Global
Assuming the 90 days horizon John Hancock Mid is expected to generate 1.35 times more return on investment than Us Global. However, John Hancock is 1.35 times more volatile than Us Global Leaders. It trades about 0.61 of its potential returns per unit of risk. Us Global Leaders is currently generating about 0.26 per unit of risk. If you would invest 1,697 in John Hancock Mid on September 2, 2024 and sell it today you would earn a total of 259.00 from holding John Hancock Mid or generate 15.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Mid vs. Us Global Leaders
Performance |
| Timeline |
| John Hancock Mid |
| Us Global Leaders |
John Hancock and Us Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Us Global
The main advantage of trading using opposite John Hancock and Us Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Us Global 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 Us Global will offset losses from the drop in Us Global'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 |
| Us Global vs. Applied Finance Explorer | Us Global vs. Hennessy Nerstone Mid | Us Global vs. Ab Discovery Value | Us Global vs. Lord Abbett 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |