Correlation Between John Hancock and John Hancock
Can any of the company-specific risk be diversified away by investing in both John Hancock 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 John Hancock and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Multifactor and John Hancock Multifactor, you can compare the effects of market volatilities on John Hancock 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 John Hancock with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and John Hancock.
Diversification Opportunities for John Hancock and John Hancock
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and John is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and John Hancock Multifactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Multifactor 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 Multifactor 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 Multifactor has no effect on the direction of John Hancock i.e., John Hancock and John Hancock go up and down completely randomly.
Pair Corralation between John Hancock and John Hancock
Given the investment horizon of 90 days John Hancock Multifactor is expected to generate 0.82 times more return on investment than John Hancock. However, John Hancock Multifactor is 1.21 times less risky than John Hancock. It trades about 0.38 of its potential returns per unit of risk. John Hancock Multifactor is currently generating about -0.1 per unit of risk. If you would invest 6,879 in John Hancock Multifactor on September 1, 2024 and sell it today you would earn a total of 446.00 from holding John Hancock Multifactor or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Multifactor vs. John Hancock Multifactor
Performance |
| Timeline |
| John Hancock Multifactor |
| John Hancock Multifactor |
John Hancock and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and John Hancock
The main advantage of trading using opposite John Hancock and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock 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.| John Hancock vs. John Hancock Multifactor | John Hancock vs. JPMorgan Diversified Return | John Hancock vs. iShares Equity Factor | John Hancock vs. John Hancock Multifactor |
| John Hancock vs. Xtrackers MSCI Emerging | John Hancock vs. FlexShares Morningstar Emerging | John Hancock vs. First Trust Emerging |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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