Correlation Between John Hancock and J Hancock
Can any of the company-specific risk be diversified away by investing in both John Hancock and J 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 John Hancock and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Esg and J Hancock Ii, you can compare the effects of market volatilities on John Hancock and J 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 John Hancock with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and J Hancock.
Diversification Opportunities for John Hancock and J Hancock
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and JRETX is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Esg and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii 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 Esg are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of John Hancock i.e., John Hancock and J Hancock go up and down completely randomly.
Pair Corralation between John Hancock and J Hancock
Assuming the 90 days horizon John Hancock Esg is expected to under-perform the J Hancock. In addition to that, John Hancock is 1.39 times more volatile than J Hancock Ii. It trades about -0.07 of its total potential returns per unit of risk. J Hancock Ii is currently generating about 0.03 per unit of volatility. If you would invest 1,370 in J Hancock Ii on November 28, 2024 and sell it today you would earn a total of 29.00 from holding J Hancock Ii or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.18% |
| Values | Daily Returns |
John Hancock Esg vs. J Hancock Ii
Performance |
| Timeline |
| John Hancock Esg |
| J Hancock Ii |
John Hancock and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and J Hancock
The main advantage of trading using opposite John Hancock and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, J 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 J Hancock will offset losses from the drop in J Hancock's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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