Correlation Between John Hancock and Blackrock Mid-cap
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blackrock Mid-cap 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 Blackrock Mid-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Bond and Blackrock Mid Cap Growth, you can compare the effects of market volatilities on John Hancock and Blackrock Mid-cap 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 Blackrock Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blackrock Mid-cap.
Diversification Opportunities for John Hancock and Blackrock Mid-cap
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Blackrock is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Bond and Blackrock Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Mid Cap 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 Bond are associated (or correlated) with Blackrock Mid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Mid Cap has no effect on the direction of John Hancock i.e., John Hancock and Blackrock Mid-cap go up and down completely randomly.
Pair Corralation between John Hancock and Blackrock Mid-cap
Assuming the 90 days horizon John Hancock is expected to generate 9.18 times less return on investment than Blackrock Mid-cap. But when comparing it to its historical volatility, John Hancock Bond is 3.41 times less risky than Blackrock Mid-cap. It trades about 0.18 of its potential returns per unit of risk. Blackrock Mid Cap Growth is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 4,114 in Blackrock Mid Cap Growth on September 2, 2024 and sell it today you would earn a total of 531.00 from holding Blackrock Mid Cap Growth or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Bond vs. Blackrock Mid Cap Growth
Performance |
| Timeline |
| John Hancock Bond |
| Blackrock Mid Cap |
John Hancock and Blackrock Mid-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blackrock Mid-cap
The main advantage of trading using opposite John Hancock and Blackrock Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackrock Mid-cap 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 Blackrock Mid-cap will offset losses from the drop in Blackrock Mid-cap's long position.| John Hancock vs. Ms Global Fixed | John Hancock vs. Rbc Global Equity | John Hancock vs. Us Vector Equity | John Hancock vs. Icon Equity Income |
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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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