Correlation Between John Hancock and Keeley Mid
Can any of the company-specific risk be diversified away by investing in both John Hancock and Keeley Mid 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 Keeley Mid 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 Keeley Mid Cap, you can compare the effects of market volatilities on John Hancock and Keeley Mid 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 Keeley Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Keeley Mid.
Diversification Opportunities for John Hancock and Keeley Mid
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between John and Keeley is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Keeley Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Mid Cap 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 Keeley Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley Mid Cap has no effect on the direction of John Hancock i.e., John Hancock and Keeley Mid go up and down completely randomly.
Pair Corralation between John Hancock and Keeley Mid
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 0.98 times more return on investment than Keeley Mid. However, John Hancock Disciplined is 1.02 times less risky than Keeley Mid. It trades about 0.31 of its potential returns per unit of risk. Keeley Mid Cap is currently generating about 0.31 per unit of risk. If you would invest 3,030 in John Hancock Disciplined on September 1, 2024 and sell it today you would earn a total of 217.00 from holding John Hancock Disciplined or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Disciplined vs. Keeley Mid Cap
Performance |
| Timeline |
| John Hancock Disciplined |
| Keeley Mid Cap |
John Hancock and Keeley Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Keeley Mid
The main advantage of trading using opposite John Hancock and Keeley Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Keeley Mid 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 Keeley Mid will offset losses from the drop in Keeley Mid'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 |
| Keeley Mid vs. Siit Emerging Markets | Keeley Mid vs. Shelton Emerging Markets | Keeley Mid vs. Calvert Developed Market | Keeley Mid vs. Transamerica Emerging Markets |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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