Correlation Between John Hancock and Qs Growth
Can any of the company-specific risk be diversified away by investing in both John Hancock and Qs Growth 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 Qs Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Global and Qs Growth Fund, you can compare the effects of market volatilities on John Hancock and Qs Growth 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 Qs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Qs Growth.
Diversification Opportunities for John Hancock and Qs Growth
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and LANIX is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Qs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Growth Fund 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 Global are associated (or correlated) with Qs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Growth Fund has no effect on the direction of John Hancock i.e., John Hancock and Qs Growth go up and down completely randomly.
Pair Corralation between John Hancock and Qs Growth
Assuming the 90 days horizon John Hancock is expected to generate 7.25 times less return on investment than Qs Growth. But when comparing it to its historical volatility, John Hancock Global is 1.2 times less risky than Qs Growth. It trades about 0.03 of its potential returns per unit of risk. Qs Growth Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,770 in Qs Growth Fund on September 12, 2024 and sell it today you would earn a total of 114.00 from holding Qs Growth Fund or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Global vs. Qs Growth Fund
Performance |
| Timeline |
| John Hancock Global |
| Qs Growth Fund |
John Hancock and Qs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Qs Growth
The main advantage of trading using opposite John Hancock and Qs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Qs Growth 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 Qs Growth will offset losses from the drop in Qs Growth's long position.| John Hancock vs. Dodge Global Stock | John Hancock vs. Franklin Mutual Global | John Hancock vs. T Rowe Price | John Hancock vs. HUMANA INC |
| Qs Growth vs. Msift High Yield | Qs Growth vs. City National Rochdale | Qs Growth vs. Gmo High Yield | Qs Growth vs. Voya High Yield |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |