Correlation Between John Hancock and Siit Ultra
Can any of the company-specific risk be diversified away by investing in both John Hancock and Siit Ultra 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 Siit Ultra 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 Siit Ultra Short, you can compare the effects of market volatilities on John Hancock and Siit Ultra 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 Siit Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Siit Ultra.
Diversification Opportunities for John Hancock and Siit Ultra
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Siit is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Ii and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short 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 Siit Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of John Hancock i.e., John Hancock and Siit Ultra go up and down completely randomly.
Pair Corralation between John Hancock and Siit Ultra
Assuming the 90 days horizon John Hancock Ii is expected to under-perform the Siit Ultra. In addition to that, John Hancock is 19.64 times more volatile than Siit Ultra Short. It trades about -0.26 of its total potential returns per unit of risk. Siit Ultra Short is currently generating about 0.08 per unit of volatility. If you would invest 995.00 in Siit Ultra Short on September 22, 2024 and sell it today you would earn a total of 1.00 from holding Siit Ultra Short or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
John Hancock Ii vs. Siit Ultra Short
Performance |
| Timeline |
| John Hancock Ii |
| Siit Ultra Short |
John Hancock and Siit Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Siit Ultra
The main advantage of trading using opposite John Hancock and Siit Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Siit Ultra 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 Siit Ultra will offset losses from the drop in Siit Ultra'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 |
| Siit Ultra vs. Applied Finance Explorer | Siit Ultra vs. John Hancock Ii | Siit Ultra vs. Fpa Queens Road | Siit Ultra vs. Vanguard Small Cap Value |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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