Correlation Between John Hancock and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on John Hancock and Nasdaq 100 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 Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nasdaq 100.
Diversification Opportunities for John Hancock and Nasdaq 100
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Nasdaq is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of John Hancock i.e., John Hancock and Nasdaq 100 go up and down completely randomly.
Pair Corralation between John Hancock and Nasdaq 100
Assuming the 90 days horizon John Hancock is expected to generate 1.81 times less return on investment than Nasdaq 100. But when comparing it to its historical volatility, John Hancock Disciplined is 1.86 times less risky than Nasdaq 100. It trades about 0.28 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 38,210 in Nasdaq 100 2x Strategy on September 4, 2024 and sell it today you would earn a total of 4,438 from holding Nasdaq 100 2x Strategy or generate 11.61% 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. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| John Hancock Disciplined |
| Nasdaq 100 2x |
John Hancock and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nasdaq 100
The main advantage of trading using opposite John Hancock and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| John Hancock vs. Mfs Value Fund | John Hancock vs. Mfs International Value | John Hancock vs. Metropolitan West Total | John Hancock vs. Mfs International Diversification |
| Nasdaq 100 vs. L Abbett Growth | Nasdaq 100 vs. Pace Smallmedium Growth | Nasdaq 100 vs. William Blair Growth | Nasdaq 100 vs. Artisan Small Cap |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |