Correlation Between John Hancock and Jpmorgan Growth
Can any of the company-specific risk be diversified away by investing in both John Hancock and Jpmorgan Growth 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 Jpmorgan Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Jpmorgan Growth Advantage, you can compare the effects of market volatilities on John Hancock and Jpmorgan Growth 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 Jpmorgan Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Jpmorgan Growth.
Diversification Opportunities for John Hancock and Jpmorgan Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Jpmorgan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Jpmorgan Growth Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Growth Advantage 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 Disciplined are associated (or correlated) with Jpmorgan Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Growth Advantage has no effect on the direction of John Hancock i.e., John Hancock and Jpmorgan Growth go up and down completely randomly.
Pair Corralation between John Hancock and Jpmorgan Growth
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 0.59 times more return on investment than Jpmorgan Growth. However, John Hancock Disciplined is 1.69 times less risky than Jpmorgan Growth. It trades about -0.14 of its potential returns per unit of risk. Jpmorgan Growth Advantage is currently generating about -0.17 per unit of risk. If you would invest 2,426 in John Hancock Disciplined on December 31, 2024 and sell it today you would lose (79.00) from holding John Hancock Disciplined or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Jpmorgan Growth Advantage
Performance |
| Timeline |
| John Hancock Disciplined |
| Jpmorgan Growth Advantage |
John Hancock and Jpmorgan Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Jpmorgan Growth
The main advantage of trading using opposite John Hancock and Jpmorgan Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Jpmorgan Growth 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 Jpmorgan Growth will offset losses from the drop in Jpmorgan Growth's long position.| John Hancock vs. Gmo Global Equity | John Hancock vs. Siit Global Managed | John Hancock vs. The Hartford Global | John Hancock vs. Ab Global Bond |
| Jpmorgan Growth vs. Jpmorgan Value Advantage | Jpmorgan Growth vs. Jpmorgan Equity Income | Jpmorgan Growth vs. Jpmorgan Large Cap | Jpmorgan Growth vs. Jpmorgan Equity 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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