Correlation Between John Hancock and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both John Hancock and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Small, you can compare the effects of market volatilities on John Hancock and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Goldman Sachs.
Diversification Opportunities for John Hancock and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Small has no effect on the direction of John Hancock i.e., John Hancock and Goldman Sachs go up and down completely randomly.
Pair Corralation between John Hancock and Goldman Sachs
If you would invest 2,783 in Goldman Sachs Small on October 25, 2024 and sell it today you would earn a total of 104.00 from holding Goldman Sachs Small or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 63.16% |
| Values | Daily Returns |
John Hancock Money vs. Goldman Sachs Small
Performance |
| Timeline |
| John Hancock Money |
| Goldman Sachs Small |
John Hancock and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Goldman Sachs
The main advantage of trading using opposite John Hancock and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| John Hancock vs. Franklin Servative Allocation | John Hancock vs. Tax Free Conservative Income | John Hancock vs. Voya Retirement Servative | John Hancock vs. Goldman Sachs Short Term |
| Goldman Sachs vs. Vy Goldman Sachs | Goldman Sachs vs. First Eagle Gold | Goldman Sachs vs. Invesco Gold Special | Goldman Sachs vs. Short Precious Metals |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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