Correlation Between John Hancock and M3sixty Capital
Can any of the company-specific risk be diversified away by investing in both John Hancock and M3sixty Capital 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 M3sixty Capital 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 M3sixty Capital Small, you can compare the effects of market volatilities on John Hancock and M3sixty Capital 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 M3sixty Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and M3sixty Capital.
Diversification Opportunities for John Hancock and M3sixty Capital
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and M3sixty is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and M3sixty Capital Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M3sixty Capital Small 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 M3sixty Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M3sixty Capital Small has no effect on the direction of John Hancock i.e., John Hancock and M3sixty Capital go up and down completely randomly.
Pair Corralation between John Hancock and M3sixty Capital
Assuming the 90 days horizon John Hancock is expected to generate 13.24 times less return on investment than M3sixty Capital. But when comparing it to its historical volatility, John Hancock Government is 4.57 times less risky than M3sixty Capital. It trades about 0.09 of its potential returns per unit of risk. M3sixty Capital Small is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,137 in M3sixty Capital Small on September 4, 2024 and sell it today you would earn a total of 104.00 from holding M3sixty Capital Small or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
John Hancock Government vs. M3sixty Capital Small
Performance |
| Timeline |
| John Hancock Government |
| M3sixty Capital Small |
John Hancock and M3sixty Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and M3sixty Capital
The main advantage of trading using opposite John Hancock and M3sixty Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, M3sixty Capital 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 M3sixty Capital will offset losses from the drop in M3sixty Capital'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 |
| M3sixty Capital vs. John Hancock Government | M3sixty Capital vs. Dws Government Money | M3sixty Capital vs. Fidelity Series Government | M3sixty Capital vs. Us Government Securities |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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