Correlation Between John Hancock and Tfa Alphagen
Can any of the company-specific risk be diversified away by investing in both John Hancock and Tfa Alphagen 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 Tfa Alphagen 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 Tfa Alphagen Growth, you can compare the effects of market volatilities on John Hancock and Tfa Alphagen 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 Tfa Alphagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Tfa Alphagen.
Diversification Opportunities for John Hancock and Tfa Alphagen
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and Tfa is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Tfa Alphagen Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tfa Alphagen Growth 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 Tfa Alphagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tfa Alphagen Growth has no effect on the direction of John Hancock i.e., John Hancock and Tfa Alphagen go up and down completely randomly.
Pair Corralation between John Hancock and Tfa Alphagen
Assuming the 90 days horizon John Hancock is expected to generate 9.4 times less return on investment than Tfa Alphagen. But when comparing it to its historical volatility, John Hancock Global is 1.34 times less risky than Tfa Alphagen. It trades about 0.03 of its potential returns per unit of risk. Tfa Alphagen Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,044 in Tfa Alphagen Growth on September 12, 2024 and sell it today you would earn a total of 88.00 from holding Tfa Alphagen Growth or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Global vs. Tfa Alphagen Growth
Performance |
| Timeline |
| John Hancock Global |
| Tfa Alphagen Growth |
John Hancock and Tfa Alphagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Tfa Alphagen
The main advantage of trading using opposite John Hancock and Tfa Alphagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Tfa Alphagen 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 Tfa Alphagen will offset losses from the drop in Tfa Alphagen'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 |
| Tfa Alphagen vs. Small Pany Growth | Tfa Alphagen vs. Crafword Dividend Growth | Tfa Alphagen vs. Mid Cap Growth | Tfa Alphagen vs. L Abbett Growth |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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