Correlation Between JPMorgan Chase and John Hancock
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase 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 JPMorgan Chase and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and John Hancock Esg, you can compare the effects of market volatilities on JPMorgan Chase 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 JPMorgan Chase with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and John Hancock.
Diversification Opportunities for JPMorgan Chase and John Hancock
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JPMorgan and John is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and John Hancock Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Esg and JPMorgan Chase 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 JPMorgan Chase Co 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 Esg has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and John Hancock go up and down completely randomly.
Pair Corralation between JPMorgan Chase and John Hancock
Considering the 90-day investment horizon JPMorgan Chase Co is expected to generate 3.61 times more return on investment than John Hancock. However, JPMorgan Chase is 3.61 times more volatile than John Hancock Esg. It trades about 0.18 of its potential returns per unit of risk. John Hancock Esg is currently generating about 0.14 per unit of risk. If you would invest 22,550 in JPMorgan Chase Co on August 29, 2024 and sell it today you would earn a total of 2,432 from holding JPMorgan Chase Co or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPMorgan Chase Co vs. John Hancock Esg
Performance |
| Timeline |
| JPMorgan Chase |
| John Hancock Esg |
JPMorgan Chase and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPMorgan Chase and John Hancock
The main advantage of trading using opposite JPMorgan Chase and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase 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.| JPMorgan Chase vs. Citigroup | JPMorgan Chase vs. Wells Fargo | JPMorgan Chase vs. Toronto Dominion Bank | JPMorgan Chase vs. Nu Holdings |
| John Hancock vs. Pro Blend Moderate Term | John Hancock vs. American Funds Retirement | John Hancock vs. Target Retirement 2040 | John Hancock vs. Dimensional Retirement Income |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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