Correlation Between John Hancock and Global Small
Can any of the company-specific risk be diversified away by investing in both John Hancock and Global Small 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 Global Small 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 Global Small Cap, you can compare the effects of market volatilities on John Hancock and Global Small 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 Global Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Global Small.
Diversification Opportunities for John Hancock and Global Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Global Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Small Cap 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 Global Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Small Cap has no effect on the direction of John Hancock i.e., John Hancock and Global Small go up and down completely randomly.
Pair Corralation between John Hancock and Global Small
If you would invest 1,602 in Global Small Cap on September 3, 2024 and sell it today you would earn a total of 402.00 from holding Global Small Cap or generate 25.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Money vs. Global Small Cap
Performance |
| Timeline |
| John Hancock Money |
| Global Small Cap |
John Hancock and Global Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Global Small
The main advantage of trading using opposite John Hancock and Global Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Global Small 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 Global Small will offset losses from the drop in Global Small's long position.| John Hancock vs. T Rowe Price | John Hancock vs. Ultra Short Fixed Income | John Hancock vs. Maryland Tax Free Bond | John Hancock vs. Blrc Sgy Mnp |
| Global Small vs. Wells Fargo Funds | Global Small vs. Aig Government Money | Global Small vs. Hsbc Treasury Money | Global Small vs. John Hancock Money |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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