Correlation Between John Hancock and Nationwide International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nationwide International 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 Nationwide International 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 Nationwide International Index, you can compare the effects of market volatilities on John Hancock and Nationwide International 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 Nationwide International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nationwide International.
Diversification Opportunities for John Hancock and Nationwide International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Nationwide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Nationwide International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide International 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 Nationwide International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide International has no effect on the direction of John Hancock i.e., John Hancock and Nationwide International go up and down completely randomly.
Pair Corralation between John Hancock and Nationwide International
If you would invest 852.00 in Nationwide International Index on October 24, 2024 and sell it today you would earn a total of 29.00 from holding Nationwide International Index or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
John Hancock Money vs. Nationwide International Index
Performance |
| Timeline |
| John Hancock Money |
| Nationwide International |
John Hancock and Nationwide International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nationwide International
The main advantage of trading using opposite John Hancock and Nationwide International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nationwide International 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 Nationwide International will offset losses from the drop in Nationwide International's long position.| John Hancock vs. Ridgeworth Seix Government | John Hancock vs. Schwab Government Money | John Hancock vs. Dws Government Money | John Hancock vs. Virtus Seix Government |
| Nationwide International vs. Transamerica Funds | Nationwide International vs. Janus Investment | Nationwide International vs. John Hancock Money | Nationwide International vs. Rbc Funds Trust |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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