Correlation Between John Hancock and Extended Market
Can any of the company-specific risk be diversified away by investing in both John Hancock and Extended Market 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 Extended Market 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 Extended Market Index, you can compare the effects of market volatilities on John Hancock and Extended Market 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 Extended Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Extended Market.
Diversification Opportunities for John Hancock and Extended Market
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Extended is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Extended Market Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extended Market Index 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 Extended Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extended Market Index has no effect on the direction of John Hancock i.e., John Hancock and Extended Market go up and down completely randomly.
Pair Corralation between John Hancock and Extended Market
If you would invest 2,096 in Extended Market Index on September 29, 2024 and sell it today you would lose (30.00) from holding Extended Market Index or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Money vs. Extended Market Index
Performance |
| Timeline |
| John Hancock Money |
| Extended Market Index |
John Hancock and Extended Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Extended Market
The main advantage of trading using opposite John Hancock and Extended Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Extended Market 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 Extended Market will offset losses from the drop in Extended Market's long position.| John Hancock vs. Wealthbuilder Conservative Allocation | John Hancock vs. Elfun Diversified Fund | John Hancock vs. Stone Ridge Diversified | John Hancock vs. Aqr Diversified Arbitrage |
| Extended Market vs. Guidemark Large Cap | Extended Market vs. Aqr Large Cap | Extended Market vs. Upright Assets Allocation | Extended Market vs. Smead Value 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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