Correlation Between John Hancock and Portfolio
Can any of the company-specific risk be diversified away by investing in both John Hancock and Portfolio 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 Portfolio 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 Portfolio 21 Global, you can compare the effects of market volatilities on John Hancock and Portfolio 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 Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Portfolio.
Diversification Opportunities for John Hancock and Portfolio
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Portfolio is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Esg and Portfolio 21 Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portfolio 21 Global 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 Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portfolio 21 Global has no effect on the direction of John Hancock i.e., John Hancock and Portfolio go up and down completely randomly.
Pair Corralation between John Hancock and Portfolio
Assuming the 90 days horizon John Hancock Esg is expected to generate 1.07 times more return on investment than Portfolio. However, John Hancock is 1.07 times more volatile than Portfolio 21 Global. It trades about 0.08 of its potential returns per unit of risk. Portfolio 21 Global is currently generating about 0.05 per unit of risk. If you would invest 2,292 in John Hancock Esg on August 25, 2024 and sell it today you would earn a total of 278.00 from holding John Hancock Esg or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
John Hancock Esg vs. Portfolio 21 Global
Performance |
| Timeline |
| John Hancock Esg |
| Portfolio 21 Global |
John Hancock and Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Portfolio
The main advantage of trading using opposite John Hancock and Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Portfolio 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 Portfolio will offset losses from the drop in Portfolio'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 |
| Portfolio vs. Pax Small Cap | Portfolio vs. John Hancock Esg | Portfolio vs. Pax Global Environmental | Portfolio vs. Portfolio 21 Global |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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