Correlation Between John Hancock and Integrity High
Can any of the company-specific risk be diversified away by investing in both John Hancock and Integrity High 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 Integrity High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Investment and Integrity High Income, you can compare the effects of market volatilities on John Hancock and Integrity High 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 Integrity High. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Integrity High.
Diversification Opportunities for John Hancock and Integrity High
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Integrity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investment and Integrity High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity High Income 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 Investment are associated (or correlated) with Integrity High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity High Income has no effect on the direction of John Hancock i.e., John Hancock and Integrity High go up and down completely randomly.
Pair Corralation between John Hancock and Integrity High
Assuming the 90 days horizon John Hancock Investment is expected to generate 5.74 times more return on investment than Integrity High. However, John Hancock is 5.74 times more volatile than Integrity High Income. It trades about 0.37 of its potential returns per unit of risk. Integrity High Income is currently generating about 0.23 per unit of risk. If you would invest 7,764 in John Hancock Investment on September 1, 2024 and sell it today you would earn a total of 488.00 from holding John Hancock Investment or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Investment vs. Integrity High Income
Performance |
| Timeline |
| John Hancock Investment |
| Integrity High Income |
John Hancock and Integrity High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Integrity High
The main advantage of trading using opposite John Hancock and Integrity High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Integrity High 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 Integrity High will offset losses from the drop in Integrity High'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 |
| Integrity High vs. Aqr Large Cap | Integrity High vs. Americafirst Large Cap | Integrity High vs. John Hancock Investment | Integrity High vs. Jhancock Disciplined Value |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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