Correlation Between John Hancock and Small Cap
Can any of the company-specific risk be diversified away by investing in both John Hancock and Small Cap 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 Small Cap 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 Small Cap Growth, you can compare the effects of market volatilities on John Hancock and Small Cap 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 Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Small Cap.
Diversification Opportunities for John Hancock and Small Cap
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Small is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Small Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Growth 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 Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Growth has no effect on the direction of John Hancock i.e., John Hancock and Small Cap go up and down completely randomly.
Pair Corralation between John Hancock and Small Cap
If you would invest 1,694 in Small Cap Growth on September 12, 2024 and sell it today you would lose (1.00) from holding Small Cap Growth or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Money vs. Small Cap Growth
Performance |
| Timeline |
| John Hancock Money |
| Small Cap Growth |
John Hancock and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Small Cap
The main advantage of trading using opposite John Hancock and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap'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 |
| Small Cap vs. Sierra E Retirement | Small Cap vs. Qs Moderate Growth | Small Cap vs. College Retirement Equities | Small Cap vs. Transamerica Cleartrack Retirement |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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