Correlation Between John Hancock and Us Real
Can any of the company-specific risk be diversified away by investing in both John Hancock and Us Real 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 Us Real 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 Us Real Estate, you can compare the effects of market volatilities on John Hancock and Us Real 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 Us Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Us Real.
Diversification Opportunities for John Hancock and Us Real
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JOHN and MSULX is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Us Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Real Estate 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 Us Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Real Estate has no effect on the direction of John Hancock i.e., John Hancock and Us Real go up and down completely randomly.
Pair Corralation between John Hancock and Us Real
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 0.99 times more return on investment than Us Real. However, John Hancock Disciplined is 1.01 times less risky than Us Real. It trades about 0.12 of its potential returns per unit of risk. Us Real Estate is currently generating about 0.11 per unit of risk. If you would invest 2,027 in John Hancock Disciplined on September 1, 2024 and sell it today you would earn a total of 721.00 from holding John Hancock Disciplined or generate 35.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.88% |
| Values | Daily Returns |
John Hancock Disciplined vs. Us Real Estate
Performance |
| Timeline |
| John Hancock Disciplined |
| Us Real Estate |
John Hancock and Us Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Us Real
The main advantage of trading using opposite John Hancock and Us Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Us Real 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 Us Real will offset losses from the drop in Us Real's long position.| John Hancock vs. Ab Global Risk | John Hancock vs. Franklin High Income | John Hancock vs. T Rowe Price | John Hancock vs. California High Yield Municipal |
| Us Real vs. Realty Income | Us Real vs. Dynex Capital | Us Real vs. First Industrial Realty | Us Real vs. Healthcare Realty Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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