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 Focused, 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
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Retirement and John is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Retirement Living Through and John Hancock Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Focused 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 Focused 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 1.42 times more return on investment than John Hancock. However, Retirement Living is 1.42 times more volatile than John Hancock Focused. It trades about 0.19 of its potential returns per unit of risk. John Hancock Focused is currently generating about 0.14 per unit of risk. If you would invest 987.00 in Retirement Living Through on October 20, 2024 and sell it today you would earn a total of 12.00 from holding Retirement Living Through or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Retirement Living Through vs. John Hancock Focused
Performance |
| Timeline |
| Retirement Living Through |
| John Hancock Focused |
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. Artisan Developing World | Retirement Living vs. Virtus Multi Strategy Target | Retirement Living vs. Alphacentric Symmetry Strategy | Retirement Living vs. Saat Defensive Strategy |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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