Correlation Between John Hancock and Fuller Thaler
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fuller Thaler 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 Fuller Thaler 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 Fuller Thaler Behavioral, you can compare the effects of market volatilities on John Hancock and Fuller Thaler 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 Fuller Thaler. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fuller Thaler.
Diversification Opportunities for John Hancock and Fuller Thaler
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Fuller is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Fuller Thaler Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuller Thaler Behavioral 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 Fuller Thaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuller Thaler Behavioral has no effect on the direction of John Hancock i.e., John Hancock and Fuller Thaler go up and down completely randomly.
Pair Corralation between John Hancock and Fuller Thaler
Assuming the 90 days horizon John Hancock Government is expected to generate 0.38 times more return on investment than Fuller Thaler. However, John Hancock Government is 2.61 times less risky than Fuller Thaler. It trades about 0.15 of its potential returns per unit of risk. Fuller Thaler Behavioral is currently generating about -0.29 per unit of risk. If you would invest 770.00 in John Hancock Government on November 27, 2024 and sell it today you would earn a total of 6.00 from holding John Hancock Government or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Fuller Thaler Behavioral
Performance |
| Timeline |
| John Hancock Government |
| Fuller Thaler Behavioral |
John Hancock and Fuller Thaler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Fuller Thaler
The main advantage of trading using opposite John Hancock and Fuller Thaler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fuller Thaler 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 Fuller Thaler will offset losses from the drop in Fuller Thaler's long position.| John Hancock vs. Collegeadvantage 529 Savings | John Hancock vs. Voya Government Money | John Hancock vs. Prudential Emerging Markets | John Hancock vs. Franklin Government Money |
| Fuller Thaler vs. Gold And Precious | Fuller Thaler vs. Ocm Mutual Fund | Fuller Thaler vs. Invesco Gold Special | Fuller Thaler vs. Gamco Global Gold |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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