Correlation Between John Hancock and Mm Sp
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mm Sp 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 Mm Sp 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 Mm Sp 500, you can compare the effects of market volatilities on John Hancock and Mm Sp 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 Mm Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mm Sp.
Diversification Opportunities for John Hancock and Mm Sp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and MMIEX is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Mm Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mm Sp 500 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 Mm Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mm Sp 500 has no effect on the direction of John Hancock i.e., John Hancock and Mm Sp go up and down completely randomly.
Pair Corralation between John Hancock and Mm Sp
Assuming the 90 days horizon John Hancock is expected to generate 13.61 times less return on investment than Mm Sp. But when comparing it to its historical volatility, John Hancock Government is 1.91 times less risky than Mm Sp. It trades about 0.05 of its potential returns per unit of risk. Mm Sp 500 is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Mm Sp 500 on September 1, 2024 and sell it today you would earn a total of 108.00 from holding Mm Sp 500 or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Government vs. Mm Sp 500
Performance |
| Timeline |
| John Hancock Government |
| Mm Sp 500 |
John Hancock and Mm Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mm Sp
The main advantage of trading using opposite John Hancock and Mm Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mm Sp 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 Mm Sp will offset losses from the drop in Mm Sp's long position.| John Hancock vs. Goldman Sachs Clean | John Hancock vs. Gold And Precious | John Hancock vs. James Balanced Golden | John Hancock vs. Vy Goldman Sachs |
| Mm Sp vs. American Century Etf | Mm Sp vs. Queens Road Small | Mm Sp vs. Fpa Queens Road | Mm Sp vs. Vanguard Small Cap Value |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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