Correlation Between John Hancock and Artisan International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Artisan International 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 Artisan International 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 Artisan International Value, you can compare the effects of market volatilities on John Hancock and Artisan International 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 Artisan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Artisan International.
Diversification Opportunities for John Hancock and Artisan International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Artisan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Artisan International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan International 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 Artisan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan International has no effect on the direction of John Hancock i.e., John Hancock and Artisan International go up and down completely randomly.
Pair Corralation between John Hancock and Artisan International
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 1.33 times more return on investment than Artisan International. However, John Hancock is 1.33 times more volatile than Artisan International Value. It trades about 0.08 of its potential returns per unit of risk. Artisan International Value is currently generating about 0.05 per unit of risk. If you would invest 2,873 in John Hancock Disciplined on September 1, 2024 and sell it today you would earn a total of 374.00 from holding John Hancock Disciplined or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Artisan International Value
Performance |
| Timeline |
| John Hancock Disciplined |
| Artisan International |
John Hancock and Artisan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Artisan International
The main advantage of trading using opposite John Hancock and Artisan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Artisan International 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 Artisan International will offset losses from the drop in Artisan International'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 |
| Artisan International vs. Baird E Plus | Artisan International vs. Johcm International Select | Artisan International vs. Artisan Developing World | Artisan International vs. Artisan High Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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