Correlation Between John Hancock and Chestnut Street
Can any of the company-specific risk be diversified away by investing in both John Hancock and Chestnut Street 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 Chestnut Street 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 Chestnut Street Exchange, you can compare the effects of market volatilities on John Hancock and Chestnut Street 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 Chestnut Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Chestnut Street.
Diversification Opportunities for John Hancock and Chestnut Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Chestnut is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Chestnut Street Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chestnut Street Exchange 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 Chestnut Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chestnut Street Exchange has no effect on the direction of John Hancock i.e., John Hancock and Chestnut Street go up and down completely randomly.
Pair Corralation between John Hancock and Chestnut Street
If you would invest 100.00 in John Hancock Money on November 29, 2024 and sell it today you would earn a total of 0.00 from holding John Hancock Money or generate 0.0% 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. Chestnut Street Exchange
Performance |
| Timeline |
| John Hancock Money |
| Chestnut Street Exchange |
John Hancock and Chestnut Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Chestnut Street
The main advantage of trading using opposite John Hancock and Chestnut Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Chestnut Street 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 Chestnut Street will offset losses from the drop in Chestnut Street's long position.| John Hancock vs. Elfun Government Money | John Hancock vs. Jpmorgan Trust I | John Hancock vs. State Street Institutional | John Hancock vs. T Rowe Price |
| Chestnut Street vs. Massmutual Premier Diversified | Chestnut Street vs. Lord Abbett Diversified | Chestnut Street vs. Tax Free Conservative Income | Chestnut Street vs. Global Diversified Income |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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