Correlation Between Global Absolute and John Hancock
Can any of the company-specific risk be diversified away by investing in both Global Absolute and John Hancock 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 Global Absolute and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Absolute Return and John Hancock Money, you can compare the effects of market volatilities on Global Absolute and John Hancock 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 Global Absolute with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Absolute and John Hancock.
Diversification Opportunities for Global Absolute and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Absolute Return and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Global Absolute 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 Global Absolute Return are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Money has no effect on the direction of Global Absolute i.e., Global Absolute and John Hancock go up and down completely randomly.
Pair Corralation between Global Absolute and John Hancock
If you would invest 1,004 in Global Absolute Return on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Global Absolute Return or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Absolute Return vs. John Hancock Money
Performance |
| Timeline |
| Global Absolute Return |
| John Hancock Money |
Global Absolute and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Absolute and John Hancock
The main advantage of trading using opposite Global Absolute and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Absolute position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Global Absolute vs. John Hancock Money | Global Absolute vs. Schwab Treasury Money | Global Absolute vs. Wilmington Funds | Global Absolute vs. Elfun Government Money |
| John Hancock vs. T Rowe Price | John Hancock vs. Ultra Short Fixed Income | John Hancock vs. Maryland Tax Free Bond | John Hancock vs. Blrc Sgy Mnp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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