Correlation Between Retirement Choices and John Hancock
Can any of the company-specific risk be diversified away by investing in both Retirement Choices 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 Retirement Choices and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retirement Choices At and John Hancock Financial, you can compare the effects of market volatilities on Retirement Choices 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 Retirement Choices with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retirement Choices and John Hancock.
Diversification Opportunities for Retirement Choices and John Hancock
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Retirement and John is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Retirement Choices At and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Retirement Choices 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 Retirement Choices At 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 Financial has no effect on the direction of Retirement Choices i.e., Retirement Choices and John Hancock go up and down completely randomly.
Pair Corralation between Retirement Choices and John Hancock
If you would invest 3,378 in John Hancock Financial on September 4, 2024 and sell it today you would earn a total of 542.00 from holding John Hancock Financial or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Retirement Choices At vs. John Hancock Financial
Performance |
| Timeline |
| Retirement Choices |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Financial |
Retirement Choices and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retirement Choices and John Hancock
The main advantage of trading using opposite Retirement Choices and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retirement Choices 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.| Retirement Choices vs. General Money Market | Retirement Choices vs. Transamerica Funds | Retirement Choices vs. Matson Money Equity | Retirement Choices vs. Wells Fargo Funds |
| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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