Correlation Between John Hancock and Monteagle Select
Can any of the company-specific risk be diversified away by investing in both John Hancock and Monteagle 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 Monteagle 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 Monteagle Select Value, you can compare the effects of market volatilities on John Hancock and Monteagle 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 Monteagle Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Monteagle Select.
Diversification Opportunities for John Hancock and Monteagle Select
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Monteagle is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Monteagle Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monteagle Select Value 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 Monteagle Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monteagle Select Value has no effect on the direction of John Hancock i.e., John Hancock and Monteagle Select go up and down completely randomly.
Pair Corralation between John Hancock and Monteagle Select
Assuming the 90 days horizon John Hancock is expected to generate 1.1 times less return on investment than Monteagle Select. In addition to that, John Hancock is 1.24 times more volatile than Monteagle Select Value. It trades about 0.1 of its total potential returns per unit of risk. Monteagle Select Value is currently generating about 0.14 per unit of volatility. If you would invest 912.00 in Monteagle Select Value on September 4, 2024 and sell it today you would earn a total of 279.00 from holding Monteagle Select Value or generate 30.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Monteagle Select Value
Performance |
| Timeline |
| John Hancock Disciplined |
| Monteagle Select Value |
John Hancock and Monteagle Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Monteagle Select
The main advantage of trading using opposite John Hancock and Monteagle Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Monteagle 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 Monteagle Select will offset losses from the drop in Monteagle Select's long position.| John Hancock vs. John Hancock Disciplined | John Hancock vs. John Hancock Bond | John Hancock vs. Us Global Leaders | John Hancock vs. Mfs International Value |
| Monteagle Select vs. The Texas Fund | Monteagle Select vs. Monteagle Enhanced Equity | Monteagle Select vs. The Henssler Equity | Monteagle Select vs. Prudential Jennison International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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