Correlation Between Jpmorgan Value and John Hancock
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Value 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 Jpmorgan Value and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Value Advantage and John Hancock Bond, you can compare the effects of market volatilities on Jpmorgan Value 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 Jpmorgan Value with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Value and John Hancock.
Diversification Opportunities for Jpmorgan Value and John Hancock
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and John is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Value Advantage and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Jpmorgan Value 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 Jpmorgan Value Advantage 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 Bond has no effect on the direction of Jpmorgan Value i.e., Jpmorgan Value and John Hancock go up and down completely randomly.
Pair Corralation between Jpmorgan Value and John Hancock
Assuming the 90 days horizon Jpmorgan Value Advantage is expected to generate 2.11 times more return on investment than John Hancock. However, Jpmorgan Value is 2.11 times more volatile than John Hancock Bond. It trades about 0.04 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.04 per unit of risk. If you would invest 3,763 in Jpmorgan Value Advantage on August 31, 2024 and sell it today you would earn a total of 697.00 from holding Jpmorgan Value Advantage or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Value Advantage vs. John Hancock Bond
Performance |
| Timeline |
| Jpmorgan Value Advantage |
| John Hancock Bond |
Jpmorgan Value and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Value and John Hancock
The main advantage of trading using opposite Jpmorgan Value and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Value 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.| Jpmorgan Value vs. Jpmorgan Growth Advantage | Jpmorgan Value vs. Mfs International Diversification | Jpmorgan Value vs. Jpmorgan E Plus | Jpmorgan Value vs. John Hancock Bond |
| John Hancock vs. Firsthand Alternative Energy | John Hancock vs. Oil Gas Ultrasector | John Hancock vs. Calvert Global Energy | John Hancock vs. Ivy Energy Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |