Correlation Between John Hancock and Blackrock Smid-cap
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blackrock Smid-cap 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 Blackrock Smid-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Government and Blackrock Smid Cap Growth, you can compare the effects of market volatilities on John Hancock and Blackrock Smid-cap 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 Blackrock Smid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blackrock Smid-cap.
Diversification Opportunities for John Hancock and Blackrock Smid-cap
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Blackrock is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Blackrock Smid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Smid Cap 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 Government are associated (or correlated) with Blackrock Smid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Smid Cap has no effect on the direction of John Hancock i.e., John Hancock and Blackrock Smid-cap go up and down completely randomly.
Pair Corralation between John Hancock and Blackrock Smid-cap
Assuming the 90 days horizon John Hancock is expected to generate 5.37 times less return on investment than Blackrock Smid-cap. But when comparing it to its historical volatility, John Hancock Government is 3.22 times less risky than Blackrock Smid-cap. It trades about 0.05 of its potential returns per unit of risk. Blackrock Smid Cap Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,165 in Blackrock Smid Cap Growth on September 4, 2024 and sell it today you would earn a total of 269.00 from holding Blackrock Smid Cap Growth or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
John Hancock Government vs. Blackrock Smid Cap Growth
Performance |
| Timeline |
| John Hancock Government |
| Blackrock Smid Cap |
John Hancock and Blackrock Smid-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blackrock Smid-cap
The main advantage of trading using opposite John Hancock and Blackrock Smid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackrock Smid-cap 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 Blackrock Smid-cap will offset losses from the drop in Blackrock Smid-cap's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Blackrock Smid-cap vs. Rbb Fund | Blackrock Smid-cap vs. Ab Value Fund | Blackrock Smid-cap vs. Fabxx | Blackrock Smid-cap vs. T Rowe Price |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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