Correlation Between John Hancock and Oklahoma College
Can any of the company-specific risk be diversified away by investing in both John Hancock and Oklahoma College 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 Oklahoma College into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Enduring and Oklahoma College Savings, you can compare the effects of market volatilities on John Hancock and Oklahoma College 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 Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Oklahoma College.
Diversification Opportunities for John Hancock and Oklahoma College
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and Oklahoma is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Enduring and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings 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 Enduring are associated (or correlated) with Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of John Hancock i.e., John Hancock and Oklahoma College go up and down completely randomly.
Pair Corralation between John Hancock and Oklahoma College
Assuming the 90 days horizon John Hancock Enduring is expected to generate 0.74 times more return on investment than Oklahoma College. However, John Hancock Enduring is 1.35 times less risky than Oklahoma College. It trades about 0.14 of its potential returns per unit of risk. Oklahoma College Savings is currently generating about 0.07 per unit of risk. If you would invest 1,257 in John Hancock Enduring on September 3, 2024 and sell it today you would earn a total of 303.00 from holding John Hancock Enduring or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Enduring vs. Oklahoma College Savings
Performance |
| Timeline |
| John Hancock Enduring |
| Oklahoma College Savings |
John Hancock and Oklahoma College Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Oklahoma College
The main advantage of trading using opposite John Hancock and Oklahoma College positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Oklahoma College 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 Oklahoma College will offset losses from the drop in Oklahoma College's long position.| John Hancock vs. Oklahoma College Savings | John Hancock vs. The Hartford Emerging | John Hancock vs. Massmutual Select Diversified | John Hancock vs. Barings Emerging Markets |
| Oklahoma College vs. Vanguard Total Stock | Oklahoma College vs. Vanguard 500 Index | Oklahoma College vs. Vanguard Total Stock | Oklahoma College vs. Vanguard Total Stock |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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