Correlation Between John Hancock and Jpmorgan Mid
Can any of the company-specific risk be diversified away by investing in both John Hancock and Jpmorgan Mid 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 Jpmorgan Mid 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 Jpmorgan Mid Cap, you can compare the effects of market volatilities on John Hancock and Jpmorgan Mid 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 Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Jpmorgan Mid.
Diversification Opportunities for John Hancock and Jpmorgan Mid
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Jpmorgan is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investment and Jpmorgan Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mid 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 Investment are associated (or correlated) with Jpmorgan Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mid Cap has no effect on the direction of John Hancock i.e., John Hancock and Jpmorgan Mid go up and down completely randomly.
Pair Corralation between John Hancock and Jpmorgan Mid
Assuming the 90 days horizon John Hancock Investment is expected to generate 1.07 times more return on investment than Jpmorgan Mid. However, John Hancock is 1.07 times more volatile than Jpmorgan Mid Cap. It trades about 0.08 of its potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about 0.06 per unit of risk. If you would invest 5,667 in John Hancock Investment on September 3, 2024 and sell it today you would earn a total of 2,585 from holding John Hancock Investment or generate 45.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Investment vs. Jpmorgan Mid Cap
Performance |
| Timeline |
| John Hancock Investment |
| Jpmorgan Mid Cap |
John Hancock and Jpmorgan Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Jpmorgan Mid
The main advantage of trading using opposite John Hancock and Jpmorgan Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Jpmorgan Mid 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 Jpmorgan Mid will offset losses from the drop in Jpmorgan Mid's long position.| John Hancock vs. Calamos Dynamic Convertible | John Hancock vs. Limited Term Tax | John Hancock vs. Touchstone Premium Yield | John Hancock vs. Versatile Bond Portfolio |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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