Correlation Between John Hancock and Towpath Technology
Can any of the company-specific risk be diversified away by investing in both John Hancock and Towpath Technology 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 Towpath Technology 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 Towpath Technology, you can compare the effects of market volatilities on John Hancock and Towpath Technology 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 Towpath Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Towpath Technology.
Diversification Opportunities for John Hancock and Towpath Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Towpath is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Towpath Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Towpath Technology 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 Towpath Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Towpath Technology has no effect on the direction of John Hancock i.e., John Hancock and Towpath Technology go up and down completely randomly.
Pair Corralation between John Hancock and Towpath Technology
If you would invest 1,406 in Towpath Technology on November 8, 2024 and sell it today you would earn a total of 59.00 from holding Towpath Technology or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
John Hancock Money vs. Towpath Technology
Performance |
| Timeline |
| John Hancock Money |
| Towpath Technology |
John Hancock and Towpath Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Towpath Technology
The main advantage of trading using opposite John Hancock and Towpath Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Towpath Technology 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 Towpath Technology will offset losses from the drop in Towpath Technology's long position.| John Hancock vs. Red Oak Technology | John Hancock vs. Columbia Global Technology | John Hancock vs. Vanguard Information Technology | John Hancock vs. Hennessy Technology Fund |
| Towpath Technology vs. Baron Health Care | Towpath Technology vs. Vanguard Health Care | Towpath Technology vs. Eaton Vance Worldwide | Towpath Technology vs. Alger Health Sciences |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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