Correlation Between John Hancock and Touchstone Small
Can any of the company-specific risk be diversified away by investing in both John Hancock and Touchstone Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on John Hancock and Touchstone Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Touchstone Small.
Diversification Opportunities for John Hancock and Touchstone Small
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 Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Cap has no effect on the direction of John Hancock i.e., John Hancock and Touchstone Small go up and down completely randomly.
Pair Corralation between John Hancock and Touchstone Small
If you would invest 3,865 in Touchstone Small Cap on August 31, 2024 and sell it today you would earn a total of 312.00 from holding Touchstone Small Cap or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
John Hancock Money vs. Touchstone Small Cap
Performance |
| Timeline |
| John Hancock Money |
| Touchstone Small Cap |
John Hancock and Touchstone Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Touchstone Small
The main advantage of trading using opposite John Hancock and Touchstone Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Touchstone Small 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 Small will offset losses from the drop in Touchstone Small's long position.| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
| Touchstone Small vs. Calamos Dynamic Convertible | Touchstone Small vs. Artisan High Income | Touchstone Small vs. Ms Global Fixed | Touchstone Small vs. Inflation Protected Bond Fund |
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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