Correlation Between John Hancock and Blue Chip
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blue Chip 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 Blue Chip 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 Blue Chip Fund, you can compare the effects of market volatilities on John Hancock and Blue Chip 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 Blue Chip. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blue Chip.
Diversification Opportunities for John Hancock and Blue Chip
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Blue Chip Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Chip Fund 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 Blue Chip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Chip Fund has no effect on the direction of John Hancock i.e., John Hancock and Blue Chip go up and down completely randomly.
Pair Corralation between John Hancock and Blue Chip
If you would invest 4,814 in Blue Chip Fund on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Blue Chip Fund or generate 1.47% 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. Blue Chip Fund
Performance |
| Timeline |
| John Hancock Money |
| Blue Chip Fund |
John Hancock and Blue Chip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blue Chip
The main advantage of trading using opposite John Hancock and Blue Chip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blue Chip 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 Blue Chip will offset losses from the drop in Blue Chip'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 |
| Blue Chip vs. John Hancock Money | Blue Chip vs. Matson Money Equity | Blue Chip vs. Chestnut Street Exchange | Blue Chip vs. Franklin Government Money |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |