Correlation Between John Hancock and Matson Money
Can any of the company-specific risk be diversified away by investing in both John Hancock and Matson Money 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 Matson Money 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 Matson Money Equity, you can compare the effects of market volatilities on John Hancock and Matson Money 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 Matson Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Matson Money.
Diversification Opportunities for John Hancock and Matson Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Matson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Matson Money Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Money Equity 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 Matson Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Money Equity has no effect on the direction of John Hancock i.e., John Hancock and Matson Money go up and down completely randomly.
Pair Corralation between John Hancock and Matson Money
If you would invest 2,729 in Matson Money Equity on September 4, 2024 and sell it today you would earn a total of 1,058 from holding Matson Money Equity or generate 38.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
John Hancock Money vs. Matson Money Equity
Performance |
| Timeline |
| John Hancock Money |
| Matson Money Equity |
John Hancock and Matson Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Matson Money
The main advantage of trading using opposite John Hancock and Matson Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Matson Money 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 Matson Money will offset losses from the drop in Matson Money's long position.| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
| Matson Money vs. Western Asset High | Matson Money vs. T Rowe Price | Matson Money vs. Siit High Yield | Matson Money vs. Calvert High Yield |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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