Correlation Between John Hancock and Advisors Capital
Can any of the company-specific risk be diversified away by investing in both John Hancock and Advisors Capital 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 Advisors Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Money and Advisors Capital Dividend, you can compare the effects of market volatilities on John Hancock and Advisors Capital 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 Advisors Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Advisors Capital.
Diversification Opportunities for John Hancock and Advisors Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Advisors is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Advisors Capital Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisors Capital Dividend 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 Money are associated (or correlated) with Advisors Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisors Capital Dividend has no effect on the direction of John Hancock i.e., John Hancock and Advisors Capital go up and down completely randomly.
Pair Corralation between John Hancock and Advisors Capital
If you would invest 1,269 in Advisors Capital Dividend on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Advisors Capital Dividend or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Money vs. Advisors Capital Dividend
Performance |
| Timeline |
| John Hancock Money |
| Advisors Capital Dividend |
John Hancock and Advisors Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Advisors Capital
The main advantage of trading using opposite John Hancock and Advisors Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Advisors Capital 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 Advisors Capital will offset losses from the drop in Advisors Capital's long position.| John Hancock vs. Transamerica Financial Life | John Hancock vs. Vanguard Financials Index | John Hancock vs. Blackrock Financial Institutions | John Hancock vs. Goldman Sachs Financial |
| Advisors Capital vs. Vanguard Total Stock | Advisors Capital vs. Vanguard 500 Index | Advisors Capital vs. Vanguard Total Stock | Advisors Capital vs. Vanguard Total Stock |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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