Correlation Between John Hancock and Alphacentric Symmetry
Can any of the company-specific risk be diversified away by investing in both John Hancock and Alphacentric Symmetry 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 Alphacentric Symmetry 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 Alphacentric Symmetry Strategy, you can compare the effects of market volatilities on John Hancock and Alphacentric Symmetry 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 Alphacentric Symmetry. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Alphacentric Symmetry.
Diversification Opportunities for John Hancock and Alphacentric Symmetry
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Alphacentric is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Emerging and Alphacentric Symmetry Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Symmetry 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 Alphacentric Symmetry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Symmetry has no effect on the direction of John Hancock i.e., John Hancock and Alphacentric Symmetry go up and down completely randomly.
Pair Corralation between John Hancock and Alphacentric Symmetry
Assuming the 90 days horizon John Hancock Emerging is expected to under-perform the Alphacentric Symmetry. In addition to that, John Hancock is 1.54 times more volatile than Alphacentric Symmetry Strategy. It trades about -0.35 of its total potential returns per unit of risk. Alphacentric Symmetry Strategy is currently generating about -0.24 per unit of volatility. If you would invest 1,263 in Alphacentric Symmetry Strategy on October 10, 2024 and sell it today you would lose (27.00) from holding Alphacentric Symmetry Strategy or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Emerging vs. Alphacentric Symmetry Strategy
Performance |
| Timeline |
| John Hancock Emerging |
| Alphacentric Symmetry |
John Hancock and Alphacentric Symmetry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Alphacentric Symmetry
The main advantage of trading using opposite John Hancock and Alphacentric Symmetry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Alphacentric Symmetry 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 Alphacentric Symmetry will offset losses from the drop in Alphacentric Symmetry's long position.| John Hancock vs. Artisan High Income | John Hancock vs. Ab High Income | John Hancock vs. Lgm Risk Managed | John Hancock vs. Dunham High Yield |
| Alphacentric Symmetry vs. Alpine Ultra Short | Alphacentric Symmetry vs. Aamhimco Short Duration | Alphacentric Symmetry vs. Delaware Investments Ultrashort | Alphacentric Symmetry vs. Fidelity Flex Servative |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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