Correlation Between Multi-index 2030 and John Hancock
Can any of the company-specific risk be diversified away by investing in both Multi-index 2030 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 Multi-index 2030 and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Index 2030 Lifetime and John Hancock Focused, you can compare the effects of market volatilities on Multi-index 2030 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 Multi-index 2030 with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-index 2030 and John Hancock.
Diversification Opportunities for Multi-index 2030 and John Hancock
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multi-index and John is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Multi Index 2030 Lifetime 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 Multi-index 2030 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 Multi Index 2030 Lifetime 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 Multi-index 2030 i.e., Multi-index 2030 and John Hancock go up and down completely randomly.
Pair Corralation between Multi-index 2030 and John Hancock
Assuming the 90 days horizon Multi Index 2030 Lifetime is expected to generate 2.19 times more return on investment than John Hancock. However, Multi-index 2030 is 2.19 times more volatile than John Hancock Focused. It trades about 0.15 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 1,210 in Multi Index 2030 Lifetime on October 20, 2024 and sell it today you would earn a total of 19.00 from holding Multi Index 2030 Lifetime or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Index 2030 Lifetime vs. John Hancock Focused
Performance |
| Timeline |
| Multi Index 2030 |
| John Hancock Focused |
Multi-index 2030 and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi-index 2030 and John Hancock
The main advantage of trading using opposite Multi-index 2030 and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-index 2030 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.| Multi-index 2030 vs. Dreyfusstandish Global Fixed | Multi-index 2030 vs. Gmo High Yield | Multi-index 2030 vs. Ab Bond Inflation | Multi-index 2030 vs. Morningstar Defensive Bond |
| John Hancock vs. First Eagle Gold | John Hancock vs. Sprott Gold Equity | John Hancock vs. Short Precious Metals | John Hancock vs. Vy Goldman Sachs |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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