Correlation Between John Hancock and LeaderSharesTM AlphaFactor
Can any of the company-specific risk be diversified away by investing in both John Hancock and LeaderSharesTM AlphaFactor 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 LeaderSharesTM AlphaFactor 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 LeaderSharesTM AlphaFactor Core, you can compare the effects of market volatilities on John Hancock and LeaderSharesTM AlphaFactor 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 LeaderSharesTM AlphaFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and LeaderSharesTM AlphaFactor.
Diversification Opportunities for John Hancock and LeaderSharesTM AlphaFactor
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between John and LeaderSharesTM is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and LeaderSharesTM AlphaFactor Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeaderSharesTM AlphaFactor 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 LeaderSharesTM AlphaFactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeaderSharesTM AlphaFactor has no effect on the direction of John Hancock i.e., John Hancock and LeaderSharesTM AlphaFactor go up and down completely randomly.
Pair Corralation between John Hancock and LeaderSharesTM AlphaFactor
Given the investment horizon of 90 days John Hancock Multifactor is expected to generate 0.95 times more return on investment than LeaderSharesTM AlphaFactor. However, John Hancock Multifactor is 1.06 times less risky than LeaderSharesTM AlphaFactor. It trades about 0.42 of its potential returns per unit of risk. LeaderSharesTM AlphaFactor Core is currently generating about 0.38 per unit of risk. If you would invest 5,964 in John Hancock Multifactor on September 1, 2024 and sell it today you would earn a total of 513.00 from holding John Hancock Multifactor or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Multifactor vs. LeaderSharesTM AlphaFactor Cor
Performance |
| Timeline |
| John Hancock Multifactor |
| LeaderSharesTM AlphaFactor |
John Hancock and LeaderSharesTM AlphaFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and LeaderSharesTM AlphaFactor
The main advantage of trading using opposite John Hancock and LeaderSharesTM AlphaFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, LeaderSharesTM AlphaFactor 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 LeaderSharesTM AlphaFactor will offset losses from the drop in LeaderSharesTM AlphaFactor'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |