Correlation Between John Hancock and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both John Hancock and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Inflation Linked Bond, you can compare the effects of market volatilities on John Hancock and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Tiaa Cref.
Diversification Opportunities for John Hancock and Tiaa Cref
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Tiaa is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Tiaa Cref Inflation Linked Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Inflation 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Inflation has no effect on the direction of John Hancock i.e., John Hancock and Tiaa Cref go up and down completely randomly.
Pair Corralation between John Hancock and Tiaa Cref
Assuming the 90 days horizon John Hancock Variable is expected to generate 4.54 times more return on investment than Tiaa Cref. However, John Hancock is 4.54 times more volatile than Tiaa Cref Inflation Linked Bond. It trades about 0.32 of its potential returns per unit of risk. Tiaa Cref Inflation Linked Bond is currently generating about 0.2 per unit of risk. If you would invest 2,108 in John Hancock Variable on September 4, 2024 and sell it today you would earn a total of 108.00 from holding John Hancock Variable or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Variable vs. Tiaa Cref Inflation Linked Bon
Performance |
| Timeline |
| John Hancock Variable |
| Tiaa Cref Inflation |
John Hancock and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Tiaa Cref
The main advantage of trading using opposite John Hancock and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| John Hancock vs. Firsthand Technology Opportunities | John Hancock vs. Dreyfus Technology Growth | John Hancock vs. Janus Global Technology | John Hancock vs. Red Oak Technology |
| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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