Correlation Between John Hancock and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fidelity Advisor 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 Fidelity Advisor 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 Fidelity Advisor Health, you can compare the effects of market volatilities on John Hancock and Fidelity Advisor 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 Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fidelity Advisor.
Diversification Opportunities for John Hancock and Fidelity Advisor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Fidelity is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Bond and Fidelity Advisor Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Health 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 Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Health has no effect on the direction of John Hancock i.e., John Hancock and Fidelity Advisor go up and down completely randomly.
Pair Corralation between John Hancock and Fidelity Advisor
Assuming the 90 days horizon John Hancock is expected to generate 2.49 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, John Hancock Bond is 2.34 times less risky than Fidelity Advisor. It trades about 0.08 of its potential returns per unit of risk. Fidelity Advisor Health is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,170 in Fidelity Advisor Health on September 4, 2024 and sell it today you would earn a total of 747.00 from holding Fidelity Advisor Health or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Bond vs. Fidelity Advisor Health
Performance |
| Timeline |
| John Hancock Bond |
| Fidelity Advisor Health |
John Hancock and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Fidelity Advisor
The main advantage of trading using opposite John Hancock and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| John Hancock vs. Needham Aggressive Growth | John Hancock vs. Morningstar Aggressive Growth | John Hancock vs. Victory High Income | John Hancock vs. Artisan High Income |
| Fidelity Advisor vs. Fidelity Advisor Technology | Fidelity Advisor vs. Fidelity Advisor Biotechnology | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Utilities |
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
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |