Correlation Between Johcm Emerging and John Hancock
Can any of the company-specific risk be diversified away by investing in both Johcm Emerging and John Hancock 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 Johcm Emerging and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johcm Emerging Markets and John Hancock Government, you can compare the effects of market volatilities on Johcm Emerging and John Hancock 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 Johcm Emerging with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johcm Emerging and John Hancock.
Diversification Opportunities for Johcm Emerging and John Hancock
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Johcm and John is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Johcm Emerging Markets and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Johcm Emerging 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 Johcm Emerging Markets are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Government has no effect on the direction of Johcm Emerging i.e., Johcm Emerging and John Hancock go up and down completely randomly.
Pair Corralation between Johcm Emerging and John Hancock
Assuming the 90 days horizon Johcm Emerging is expected to generate 1.37 times less return on investment than John Hancock. In addition to that, Johcm Emerging is 2.67 times more volatile than John Hancock Government. It trades about 0.02 of its total potential returns per unit of risk. John Hancock Government is currently generating about 0.07 per unit of volatility. If you would invest 762.00 in John Hancock Government on September 1, 2024 and sell it today you would earn a total of 22.00 from holding John Hancock Government or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Johcm Emerging Markets vs. John Hancock Government
Performance |
| Timeline |
| Johcm Emerging Markets |
| John Hancock Government |
Johcm Emerging and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johcm Emerging and John Hancock
The main advantage of trading using opposite Johcm Emerging and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johcm Emerging position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Johcm Emerging vs. Regnan Uk Umbrella | Johcm Emerging vs. Tswhgyldbdinstl | Johcm Emerging vs. Tsw Emerging Markets | Johcm Emerging vs. Johcm Emerging Markets |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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