Correlation Between John Hancock and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Oppenheimer International 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 Oppenheimer International 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 Oppenheimer International Growth, you can compare the effects of market volatilities on John Hancock and Oppenheimer International 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Oppenheimer International.
Diversification Opportunities for John Hancock and Oppenheimer International
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Oppenheimer is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Oppenheimer International Grow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of John Hancock i.e., John Hancock and Oppenheimer International go up and down completely randomly.
Pair Corralation between John Hancock and Oppenheimer International
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 0.88 times more return on investment than Oppenheimer International. However, John Hancock Disciplined is 1.14 times less risky than Oppenheimer International. It trades about 0.14 of its potential returns per unit of risk. Oppenheimer International Growth is currently generating about -0.03 per unit of risk. If you would invest 2,493 in John Hancock Disciplined on September 12, 2024 and sell it today you would earn a total of 171.00 from holding John Hancock Disciplined or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Oppenheimer International Grow
Performance |
| Timeline |
| John Hancock Disciplined |
| Oppenheimer International |
John Hancock and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Oppenheimer International
The main advantage of trading using opposite John Hancock and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Oppenheimer International 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 Oppenheimer International will offset losses from the drop in Oppenheimer International's long position.| John Hancock vs. Ab Small Cap | John Hancock vs. Df Dent Small | John Hancock vs. Sp Smallcap 600 | John Hancock vs. Siit Small Mid |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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