Correlation Between John Hancock and Touchstone International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Touchstone 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 Touchstone 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 Touchstone International Small, you can compare the effects of market volatilities on John Hancock and Touchstone 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Touchstone International.
Diversification Opportunities for John Hancock and Touchstone International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Touchstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Touchstone International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of John Hancock i.e., John Hancock and Touchstone International go up and down completely randomly.
Pair Corralation between John Hancock and Touchstone International
If you would invest 1,286 in Touchstone International Small on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Touchstone International Small or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
John Hancock Money vs. Touchstone International Small
Performance |
| Timeline |
| John Hancock Money |
| Touchstone International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Touchstone International
The main advantage of trading using opposite John Hancock and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Touchstone 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 Touchstone International will offset losses from the drop in Touchstone International'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 |
| Touchstone International vs. John Hancock Money | Touchstone International vs. Schwab Treasury Money | Touchstone International vs. General Money Market | Touchstone International vs. Money Market Obligations |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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