Correlation Between John Hancock and Hartford Longevity
Can any of the company-specific risk be diversified away by investing in both John Hancock and Hartford Longevity 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 Hartford Longevity 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 Hartford Longevity Economy, you can compare the effects of market volatilities on John Hancock and Hartford Longevity 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 Hartford Longevity. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Hartford Longevity.
Diversification Opportunities for John Hancock and Hartford Longevity
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Hartford is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and Hartford Longevity Economy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Longevity 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 Hartford Longevity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Longevity has no effect on the direction of John Hancock i.e., John Hancock and Hartford Longevity go up and down completely randomly.
Pair Corralation between John Hancock and Hartford Longevity
Given the investment horizon of 90 days John Hancock Multifactor is expected to under-perform the Hartford Longevity. In addition to that, John Hancock is 1.05 times more volatile than Hartford Longevity Economy. It trades about -0.22 of its total potential returns per unit of risk. Hartford Longevity Economy is currently generating about -0.1 per unit of volatility. If you would invest 3,242 in Hartford Longevity Economy on November 28, 2024 and sell it today you would lose (50.00) from holding Hartford Longevity Economy or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Multifactor vs. Hartford Longevity Economy
Performance |
| Timeline |
| John Hancock Multifactor |
| Hartford Longevity |
John Hancock and Hartford Longevity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Hartford Longevity
The main advantage of trading using opposite John Hancock and Hartford Longevity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Hartford Longevity 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 Hartford Longevity will offset losses from the drop in Hartford Longevity's long position.| John Hancock vs. John Hancock Multifactor | John Hancock vs. JPMorgan Diversified Return | John Hancock vs. JPMorgan Diversified Return | John Hancock vs. JPMorgan Diversified Return |
| Hartford Longevity vs. Strategy Shares | Hartford Longevity vs. Freedom Day Dividend | Hartford Longevity vs. Franklin Templeton ETF | Hartford Longevity vs. iShares MSCI China |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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