Correlation Between John Hancock and Future Scholar
Can any of the company-specific risk be diversified away by investing in both John Hancock and Future Scholar 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 John Hancock and Future Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Ii and Future Scholar 529, you can compare the effects of market volatilities on John Hancock and Future Scholar 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 John Hancock with a short position of Future Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Future Scholar.
Diversification Opportunities for John Hancock and Future Scholar
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Future is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Ii and Future Scholar 529 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Scholar 529 and John Hancock 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 John Hancock Ii are associated (or correlated) with Future Scholar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Scholar 529 has no effect on the direction of John Hancock i.e., John Hancock and Future Scholar go up and down completely randomly.
Pair Corralation between John Hancock and Future Scholar
Assuming the 90 days horizon John Hancock Ii is expected to generate 6.04 times more return on investment than Future Scholar. However, John Hancock is 6.04 times more volatile than Future Scholar 529. It trades about 0.03 of its potential returns per unit of risk. Future Scholar 529 is currently generating about 0.09 per unit of risk. If you would invest 1,665 in John Hancock Ii on September 14, 2024 and sell it today you would earn a total of 269.00 from holding John Hancock Ii or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
John Hancock Ii vs. Future Scholar 529
Performance |
| Timeline |
| John Hancock Ii |
| Future Scholar 529 |
John Hancock and Future Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Future Scholar
The main advantage of trading using opposite John Hancock and Future Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Future Scholar 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 Future Scholar will offset losses from the drop in Future Scholar's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Future Scholar vs. Amg River Road | Future Scholar vs. John Hancock Ii | Future Scholar vs. Goldman Sachs Small | Future Scholar vs. Ab Small Cap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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