Correlation Between John Hancock and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both John Hancock and Massmutual Select 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 Massmutual Select 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 Massmutual Select Mid Cap, you can compare the effects of market volatilities on John Hancock and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Massmutual Select.
Diversification Opportunities for John Hancock and Massmutual Select
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Massmutual is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Mid has no effect on the direction of John Hancock i.e., John Hancock and Massmutual Select go up and down completely randomly.
Pair Corralation between John Hancock and Massmutual Select
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 1.36 times more return on investment than Massmutual Select. However, John Hancock is 1.36 times more volatile than Massmutual Select Mid Cap. It trades about 0.23 of its potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.29 per unit of risk. If you would invest 2,913 in John Hancock Disciplined on August 29, 2024 and sell it today you would earn a total of 162.00 from holding John Hancock Disciplined or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| John Hancock Disciplined |
| Massmutual Select Mid |
John Hancock and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Massmutual Select
The main advantage of trading using opposite John Hancock and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| John Hancock vs. Vanguard Mid Cap Value | John Hancock vs. HUMANA INC | John Hancock vs. Aquagold International | John Hancock vs. Barloworld Ltd ADR |
| Massmutual Select vs. Mesirow Financial Small | Massmutual Select vs. Fidelity Advisor Financial | Massmutual Select vs. Angel Oak Financial | Massmutual Select vs. Goldman Sachs 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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