Correlation Between John Hancock and Jhancock Real
Can any of the company-specific risk be diversified away by investing in both John Hancock and Jhancock Real 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 Jhancock Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Variable and Jhancock Real Estate, you can compare the effects of market volatilities on John Hancock and Jhancock Real 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 Jhancock Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Jhancock Real.
Diversification Opportunities for John Hancock and Jhancock Real
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Jhancock is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Jhancock Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Real Estate 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 Variable are associated (or correlated) with Jhancock Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Real Estate has no effect on the direction of John Hancock i.e., John Hancock and Jhancock Real go up and down completely randomly.
Pair Corralation between John Hancock and Jhancock Real
Assuming the 90 days horizon John Hancock is expected to generate 1.05 times less return on investment than Jhancock Real. In addition to that, John Hancock is 1.0 times more volatile than Jhancock Real Estate. It trades about 0.11 of its total potential returns per unit of risk. Jhancock Real Estate is currently generating about 0.12 per unit of volatility. If you would invest 1,001 in Jhancock Real Estate on September 1, 2024 and sell it today you would earn a total of 366.00 from holding Jhancock Real Estate or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Variable vs. Jhancock Real Estate
Performance |
| Timeline |
| John Hancock Variable |
| Jhancock Real Estate |
John Hancock and Jhancock Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Jhancock Real
The main advantage of trading using opposite John Hancock and Jhancock Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Jhancock Real 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 Jhancock Real will offset losses from the drop in Jhancock Real's long position.| John Hancock vs. Pace Municipal Fixed | John Hancock vs. T Rowe Price | John Hancock vs. Old Westbury Municipal | John Hancock vs. T Rowe Price |
| Jhancock Real vs. Realty Income | Jhancock Real vs. Dynex Capital | Jhancock Real vs. First Industrial Realty | Jhancock Real vs. Healthcare Realty Trust |
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.
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