Correlation Between John Hancock and Great-west Goldman
Can any of the company-specific risk be diversified away by investing in both John Hancock and Great-west Goldman 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 Great-west Goldman 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 Great West Goldman Sachs, you can compare the effects of market volatilities on John Hancock and Great-west Goldman 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 Great-west Goldman. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Great-west Goldman.
Diversification Opportunities for John Hancock and Great-west Goldman
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Great-west is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Great West Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Goldman 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 Great-west Goldman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Goldman has no effect on the direction of John Hancock i.e., John Hancock and Great-west Goldman go up and down completely randomly.
Pair Corralation between John Hancock and Great-west Goldman
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 1.19 times more return on investment than Great-west Goldman. However, John Hancock is 1.19 times more volatile than Great West Goldman Sachs. It trades about 0.16 of its potential returns per unit of risk. Great West Goldman Sachs is currently generating about 0.16 per unit of risk. If you would invest 2,914 in John Hancock Disciplined on August 24, 2024 and sell it today you would earn a total of 111.00 from holding John Hancock Disciplined or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
John Hancock Disciplined vs. Great West Goldman Sachs
Performance |
| Timeline |
| John Hancock Disciplined |
| Great West Goldman |
John Hancock and Great-west Goldman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Great-west Goldman
The main advantage of trading using opposite John Hancock and Great-west Goldman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Great-west Goldman 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 Great-west Goldman will offset losses from the drop in Great-west Goldman'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 |
| Great-west Goldman vs. Fidelity Low Priced Stock | Great-west Goldman vs. Fidelity Low Priced Stock | Great-west Goldman vs. Vanguard Mid Cap Value | Great-west Goldman vs. John Hancock Disciplined |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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