Correlation Between John Hancock and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fisher Investments 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 Fisher Investments 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 Fisher Fixed Income, you can compare the effects of market volatilities on John Hancock and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fisher Investments.
Diversification Opportunities for John Hancock and Fisher Investments
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and Fisher is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Fisher Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Fixed Income 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Fixed Income has no effect on the direction of John Hancock i.e., John Hancock and Fisher Investments go up and down completely randomly.
Pair Corralation between John Hancock and Fisher Investments
Assuming the 90 days horizon John Hancock Global is expected to generate 1.68 times more return on investment than Fisher Investments. However, John Hancock is 1.68 times more volatile than Fisher Fixed Income. It trades about 0.14 of its potential returns per unit of risk. Fisher Fixed Income is currently generating about 0.09 per unit of risk. If you would invest 1,141 in John Hancock Global on September 1, 2024 and sell it today you would earn a total of 123.00 from holding John Hancock Global or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
John Hancock Global vs. Fisher Fixed Income
Performance |
| Timeline |
| John Hancock Global |
| Fisher Fixed Income |
John Hancock and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Fisher Investments
The main advantage of trading using opposite John Hancock and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' long position.| John Hancock vs. Bbh Partner Fund | John Hancock vs. Scharf Global Opportunity | John Hancock vs. Balanced Fund Investor | John Hancock vs. Falcon Focus Scv |
| Fisher Investments vs. Rbb Fund | Fisher Investments vs. Auer Growth Fund | Fisher Investments vs. Rbc Funds Trust | Fisher Investments vs. Omni 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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