Correlation Between John Hancock and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Kinetics Global 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 Kinetics Global 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 Kinetics Global Fund, you can compare the effects of market volatilities on John Hancock and Kinetics Global 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 Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Kinetics Global.
Diversification Opportunities for John Hancock and Kinetics Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Kinetics is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global 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 Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of John Hancock i.e., John Hancock and Kinetics Global go up and down completely randomly.
Pair Corralation between John Hancock and Kinetics Global
Assuming the 90 days horizon John Hancock is expected to generate 3.77 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, John Hancock Disciplined is 1.46 times less risky than Kinetics Global. It trades about 0.05 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Kinetics Global Fund on September 1, 2024 and sell it today you would earn a total of 990.00 from holding Kinetics Global Fund or generate 120.88% 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. Kinetics Global Fund
Performance |
| Timeline |
| John Hancock Disciplined |
| Kinetics Global |
John Hancock and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Kinetics Global
The main advantage of trading using opposite John Hancock and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Kinetics Global 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 Kinetics Global will offset losses from the drop in Kinetics Global'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 |
| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |