Correlation Between Retirement Living and John Hancock
Can any of the company-specific risk be diversified away by investing in both Retirement Living 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 Living 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 Living Through and John Hancock Income, you can compare the effects of market volatilities on Retirement Living 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 Living with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retirement Living and John Hancock.
Diversification Opportunities for Retirement Living and John Hancock
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Retirement and John is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Retirement Living Through and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Retirement Living 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 Living Through 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 Income has no effect on the direction of Retirement Living i.e., Retirement Living and John Hancock go up and down completely randomly.
Pair Corralation between Retirement Living and John Hancock
Assuming the 90 days horizon Retirement Living Through is expected to generate 1.28 times more return on investment than John Hancock. However, Retirement Living is 1.28 times more volatile than John Hancock Income. It trades about 0.08 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.06 per unit of risk. If you would invest 894.00 in Retirement Living Through on August 26, 2024 and sell it today you would earn a total of 144.00 from holding Retirement Living Through or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retirement Living Through vs. John Hancock Income
Performance |
| Timeline |
| Retirement Living Through |
| John Hancock Income |
Retirement Living and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retirement Living and John Hancock
The main advantage of trading using opposite Retirement Living and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retirement Living 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 Living vs. Global Gold Fund | Retirement Living vs. Fidelity Advisor Gold | Retirement Living vs. Sprott Gold Equity | Retirement Living vs. Great West Goldman Sachs |
| John Hancock vs. Arrow Managed Futures | John Hancock vs. Ab Bond Inflation | John Hancock vs. Schwab Treasury Inflation | John Hancock vs. Fidelity Sai Inflationfocused |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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