Correlation Between John Hancock and NXG NextGen
Can any of the company-specific risk be diversified away by investing in both John Hancock and NXG NextGen 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 NXG NextGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Income and NXG NextGen Infrastructure, you can compare the effects of market volatilities on John Hancock and NXG NextGen 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 NXG NextGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and NXG NextGen.
Diversification Opportunities for John Hancock and NXG NextGen
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and NXG is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and NXG NextGen Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXG NextGen Infrastr 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 Income are associated (or correlated) with NXG NextGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXG NextGen Infrastr has no effect on the direction of John Hancock i.e., John Hancock and NXG NextGen go up and down completely randomly.
Pair Corralation between John Hancock and NXG NextGen
Considering the 90-day investment horizon John Hancock Income is expected to under-perform the NXG NextGen. But the stock apears to be less risky and, when comparing its historical volatility, John Hancock Income is 2.25 times less risky than NXG NextGen. The stock trades about -0.03 of its potential returns per unit of risk. The NXG NextGen Infrastructure is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 4,350 in NXG NextGen Infrastructure on August 28, 2024 and sell it today you would earn a total of 647.00 from holding NXG NextGen Infrastructure or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. NXG NextGen Infrastructure
Performance |
| Timeline |
| John Hancock Income |
| NXG NextGen Infrastr |
John Hancock and NXG NextGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and NXG NextGen
The main advantage of trading using opposite John Hancock and NXG NextGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, NXG NextGen 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 NXG NextGen will offset losses from the drop in NXG NextGen's long position.| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
| NXG NextGen vs. PowerUp Acquisition Corp | NXG NextGen vs. Aurora Innovation | NXG NextGen vs. HUMANA INC | NXG NextGen vs. Aquagold International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |