Correlation Between John Hancock and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both John Hancock and Credit Suisse 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 Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Emerging and Credit Suisse Multialternative, you can compare the effects of market volatilities on John Hancock and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Credit Suisse.
Diversification Opportunities for John Hancock and Credit Suisse
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Credit is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Emerging and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Emerging are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of John Hancock i.e., John Hancock and Credit Suisse go up and down completely randomly.
Pair Corralation between John Hancock and Credit Suisse
Assuming the 90 days horizon John Hancock Emerging is expected to under-perform the Credit Suisse. In addition to that, John Hancock is 1.59 times more volatile than Credit Suisse Multialternative. It trades about -0.26 of its total potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.02 per unit of volatility. If you would invest 813.00 in Credit Suisse Multialternative on October 11, 2024 and sell it today you would earn a total of 1.00 from holding Credit Suisse Multialternative or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Emerging vs. Credit Suisse Multialternative
Performance |
| Timeline |
| John Hancock Emerging |
| Credit Suisse Multia |
John Hancock and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Credit Suisse
The main advantage of trading using opposite John Hancock and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| John Hancock vs. Credit Suisse Multialternative | John Hancock vs. Lord Abbett Inflation | John Hancock vs. Guidepath Managed Futures | John Hancock vs. Fidelity Sai Inflationfocused |
| Credit Suisse vs. T Rowe Price | Credit Suisse vs. Quantitative Longshort Equity | Credit Suisse vs. Dws Equity Sector | Credit Suisse vs. Enhanced Fixed Income |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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