Correlation Between John Hancock and Wisdomtree Siegel
Can any of the company-specific risk be diversified away by investing in both John Hancock and Wisdomtree Siegel 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 Wisdomtree Siegel 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 Wisdomtree Siegel Longevity, you can compare the effects of market volatilities on John Hancock and Wisdomtree Siegel 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 Wisdomtree Siegel. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Wisdomtree Siegel.
Diversification Opportunities for John Hancock and Wisdomtree Siegel
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and WisdomTree is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Wisdomtree Siegel Longevity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisdomtree Siegel 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 Wisdomtree Siegel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wisdomtree Siegel has no effect on the direction of John Hancock i.e., John Hancock and Wisdomtree Siegel go up and down completely randomly.
Pair Corralation between John Hancock and Wisdomtree Siegel
Assuming the 90 days horizon John Hancock is expected to generate 2.14 times less return on investment than Wisdomtree Siegel. But when comparing it to its historical volatility, John Hancock Government is 1.36 times less risky than Wisdomtree Siegel. It trades about 0.15 of its potential returns per unit of risk. Wisdomtree Siegel Longevity is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,122 in Wisdomtree Siegel Longevity on September 2, 2024 and sell it today you would earn a total of 28.00 from holding Wisdomtree Siegel Longevity or generate 2.5% 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. Wisdomtree Siegel Longevity
Performance |
| Timeline |
| John Hancock Government |
| Wisdomtree Siegel |
John Hancock and Wisdomtree Siegel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Wisdomtree Siegel
The main advantage of trading using opposite John Hancock and Wisdomtree Siegel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Wisdomtree Siegel 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 Wisdomtree Siegel will offset losses from the drop in Wisdomtree Siegel's long position.| John Hancock vs. Volumetric Fund Volumetric | John Hancock vs. Rbc Microcap Value | John Hancock vs. T Rowe Price | John Hancock vs. Falcon Focus Scv |
| Wisdomtree Siegel vs. Lord Abbett Government | Wisdomtree Siegel vs. Us Government Securities | Wisdomtree Siegel vs. John Hancock Government | Wisdomtree Siegel vs. Franklin Adjustable Government |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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